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Crossroads Packaging Co

Accounting

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%.

Option 1

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