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Question: Tanner Co. sells only one product at a price of $ 10 per unit resulting in a contribution margin …
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Question: Tanner Co. sells only one product at a price of $ 10 per <a rel=unit resulting in a contribution margin …” />

Show transcribed image text Tanner Co. sells only one product at a price of $ 10 per unit resulting in a contribution margin ratio of 40%. Fixed costs are $ 10,000. The company is currently earning $20,000 before tax. Management has decided to decrease the selling price to $8 I hopes of increasing its sales volume. How many units must be sold at $8 for the company to be no worse off than before? 7, 500 9, 375 12,000 15,000

Tanner Co. sells only one product at a price of $ 10 per unit resulting in a contribution margin ratio of 40%. Fixed costs are $ 10,000. The company is currently earning $20,000 before tax. Management has decided to decrease the selling price to $8 I hopes of increasing its sales volume. How many units must be sold at $8 for the company to be no worse off than before? 7, 500 9, 375 12,000 15,000

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