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Market Demand Allowed Acme Corp

Question 22

Multiple Choice

Market demand allowed Acme Corp.to raise its price by 20 percent to $60.What is the new level of break-even revenues if fixed charges including depreciation are $1 million and variable costs were 70 percent of the old price?


A) $2,000,000
B) $2,400,000
C) $2,857,143
D) $3,333,333 old price =

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