The Cairns Company Has Fixed Costs of $400 000 and Variable

question 124

Multiple Choice

The Cairns Company has fixed costs of $400 000 and variable costs are 75% of the selling price.To realise profits of $100 000 from sales of 500 000 units,the selling price per unit:

• A)must be $1.00.
• B)must be $1.33.
• C)must be $4.00.
• D)is indeterminable.

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