Gail Co Sells a Single Product for $40 Per Unit

question 24

Multiple Choice

Gail Co sells a single product for $40 per unit.Fixed costs are $160 000 and variable costs equal 75% of sales.If fixed costs increase by $10 000,Gail will have to increase sales by how much just to earn profits equal to those earned before costs increased?

• A)$100 000
• B)$40 000
• C)$80 000
• D)$20 000

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