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WhoMadeWho Ltd

Question 2

Multiple Choice

WhoMadeWho Ltd.is planning to reduce the selling price of one of its products from £80 to £60.Fixed costs are £1.1m per annum; variable costs £40 per unit; 70,000 units per annum are made and sold.
How many additional units must be sold to make up for the price reduction?


A) 10,000 units
B) 600,000 units
C) 140,000 units
D) 70,000 units

Correct Answer:

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