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Business, 18.03.2020 21:27 SethSimunek

In 2019, Vaughn sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $300 per unit, and fixed expenses were $240000. The same selling price is expected for 2020. Vaughn’s variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Vaughn sell in 2020 to maintain the same income level as 2019?

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In 2019, Vaughn sold 1000 units at $500 each, and earned net income of $40000. Variable expenses wer...

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