Market research indicates that if americas were to drop its


1. Given the budgeted selling price and cost data, how many units would Americas have to sell to break even? (Hint: Be sure to consider selling and administrative expenses.)

2. Market research indicates that if Americas were to drop its selling price to $3.70 per unit, it could sell 100,000 units. Would you recommend the drop in price? What would the new operating income or loss be?

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Cost Accounting: Market research indicates that if americas were to drop its
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