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Parker & Associates, LLC has budgeted the following amounts for its next fiscal year:
Total fixed expenses $965,000
Selling price per unit $50
Variable expenses per unit $25
Question 1: If fixed expenses increase by 10%, the selling price per unit would need to increase by what percentage in order to maintain the original break-even sales in units (round to the nearest tenth of a percent)? Round percentage to one decimal place (ex: 0.03456 = 3.5%).
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