A Product Sells for $125,variable Costs Are $80,and Fixed Costs

question 58

Multiple Choice

A product sells for $125,variable costs are $80,and fixed costs are $45,000.If the selling price can be increased by 20% with a similar increase in variable costs,how many fewer units would have to be sold to earn $300,000? (Rounded)

• A)5,595 units.
• B)7,667 units.
• C)1,278 units.
• D)6,389 units.