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Business, 29.11.2019 04:31 katerin3499

Malone company produces a product that has a variable cost of $54 per unit and a sales price of $79 per unit. the company’s annual fixed costs total $750,000. it had net income of $250,000 in the previous year. in an effort to increase the company’s market share, management is considering lowering the selling price to $74 per unit. required1. if malone desires to maintain net income of $250,000, how many additional units must it sell to justify the price decline? assume that in addition to lowering its selling price to $74, malone also desires to increase its net income by $50,000. 2. determine the number of units the company must sell to earn the desired income.

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Malone company produces a product that has a variable cost of $54 per unit and a sales price of $79...
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