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Crossroads Packaging Co
Crossroads Packaging Co. has budgeted the following amounts for its next fiscal year:
|
Total fixed expenses |
$80,000 |
|
Selling price per unit |
$4.00 |
|
Variable expenses per unit |
$3.20 |
To maintain the original breakeven sales in units if fixed expenses were to increase by 10%, the selling price per unit would have to be
A) increased by 2.00%.
B) increased by 58.00%.
C) decreased by 2.00%.
D) decreased by 58.00%.
Expert Solution
PFA
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