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Calculating the number of units to be sold to achieve targeted profit.
Selling price per unit- $40;
total fixed expenses-$80,000;
variable expenses per unit-$30.
Assume that variable expenses are reduced by 20% per unit, and the total fixed expenses are increased by 10%. Find the sales in units to achieve a profit of $20,000, assuming no change in selling price.
Evaluate a tolerable difference for your analytical procedure.
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