Narchie Sells a Single Product for $50

question 6

Multiple Choice

Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units.
Each unit that Narchie sells will:

• A) increase profit by $20.
• B) increase profit by $30.
• C) increase profit by $50.
• D) increase profit by some other amount.
• E) decrease profit by $5.

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Definitions:

Communicate Directly

To convey information or express oneself clearly and straightforwardly without intermediary channels.

Other Party's Constituency

The group of people represented or served by the opposing side in a negotiation or political context.

Constituencies

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Agents

Individually authorized entities or people who act on behalf of others in various transactions or negotiations.