Homework answers / question archive / Moe's Garage management has budgeted the following amounts for its next fiscal year:   Total fixed expenses $500,000 Selling price per unit $45 Variable expenses per unit $25   If Moe's can reduce fixed expenses by $20,000, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? A) $19

Moe's Garage management has budgeted the following amounts for its next fiscal year:   Total fixed expenses $500,000 Selling price per unit $45 Variable expenses per unit $25   If Moe's can reduce fixed expenses by $20,000, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? A) $19

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Moe's Garage management has budgeted the following amounts for its next fiscal year:

If Moe's can reduce fixed expenses by $20,000, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units?

A) $19.20

B) $25.80

C) $0.80

D) $20.00