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Tower Inc.'s single product has a selling price of $25 per unit. Last year the company reported a profit of $20,000 and variable expenses totaling $180,000. The product has a 40% contribution margin ratio. Because of competition, Tower Inc. will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9976431

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