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Example 2.2 The Information Below Is Used for the Following Problems

Question 67

Multiple Choice

Example 2.2
The information below is used for the following problems.
Garrison's Gaskets has variable costs of $3 per unit and fixed costs of $40 000. Garrison's selling price is $5 per unit.
-Refer to Example 2.2. How much profit will Garrison's earn if it cuts its selling price to $4 per unit, and sells 100 000 units?


A) $60 000.
B) $100 000.
C) $360 000.
D) $400 000.

Correct Answer:

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