The following information is available for a month.
Total fixed costs were $100 000 and budgeted sales were 5000 units.
The directors think that if they reduce the unit selling price to $\$ 95$, sales will increase to 6500
units a month.
What would be the increase in profit as a result of this?
$\$ 12500$
2 )
$\$ 32500$
3 )
$\$ 45000$
4 )
$\$ 77500{\text{ }}$
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