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Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit, and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually.
?The company is considering a 20% drop in selling price that it believes will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if this change is made?
Aerobic Respiration
A metabolic process that uses oxygen to convert nutrients into energy (ATP), carbon dioxide, and water.
Fast Glycolytic (White)
Muscle fibers that contract quickly and powerfully but fatigue rapidly, primarily relying on anaerobic glycolysis for energy.
ATP Energy
Energy stored in adenosine triphosphate (ATP) molecules, used by cells to power various functional processes.
Aerobic Respiration
is a biochemical process by which cells convert glucose and oxygen into energy, carbon dioxide, and water.
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