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A Company Has Net Profit of $10 000, Sales Price

Question 6

Multiple Choice

A company has net profit of $10 000, sales price per unit of $25 and fixed costs of $40 000. The company would like to increase profits by 50%. What percentage increase in sales volume would be needed to achieve this goal?


A) 20%
B) 10%
C) 12.5%
D) Answer cannot be determined from the information given

Correct Answer:

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