Homework answers / question archive / Catamount Studios has budgeted the following amounts for its next fiscal year:                                              Total fixed expenses $620,000 Selling price per unit $40 Variable expenses per unit $20   If Catamount Studios can reduce fixed expenses by $46,500, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? A) $1

Catamount Studios has budgeted the following amounts for its next fiscal year:                                              Total fixed expenses $620,000 Selling price per unit $40 Variable expenses per unit $20   If Catamount Studios can reduce fixed expenses by $46,500, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? A) $1

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Catamount Studios has budgeted the following amounts for its next fiscal year:

If Catamount Studios can reduce fixed expenses by $46,500, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units?

A) $1.50

B) $20.00

C) $21.50

D) $18.50