Company a Has Fixed Expenses of $150,000 and Variable Expenses

question 12

Multiple Choice

Company A has fixed expenses of $150,000 and variable expenses of $75 per unit.Company B has fixed expenses of $300,000 and variable expenses of $50 per unit.The volume of unit sales necessary to produce exactly the same operating income for Company A and Company B is:

• A)2,000.
• B)6,000.
• C)4,000.
• D)8,000.

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