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In the Current Year,the Company Sold 43,000 Units

Question 109

Multiple Choice

In the current year,the company sold 43,000 units.Due to competition,management will be forced to lower the selling price by 10% next year.How many units must be sold next year to earn the same operating income as was earned in the current year?


A) 50,000 units.
B) 53,200 units.
C) 58,800 units.
D) 60,200 units.New CM = 40 * (1 - .10) - 20 - 6 = $10.Units required = (532,000 + 70,000) /10 = 60,200 units.

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