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jerico jerico
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10 years ago
Option one: Fixed costs of $10,000 and a breakeven point of 500 units.
Option two: Fixed costs of $20,000 and a breakeven point of 700 units.
Which option should you choose if you are expecting to produce 600 units?
A) Option one as sales is higher than breakeven
B) Option two as sales is lower than breakeven
C) Option two as it would lead to a higher operating income
D) Option one as fixed costs is more
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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10 years ago
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jerico Author
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#2
10 years ago
Very happy to know people like you still exist. Really, without your help, I wouldn't understand the content one bit.
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#3
10 years ago
Sweet, you're welcome.
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