Effect of the unit price factor on the change


Problem:

If sales totaled $200,000 for the current year (10,000 units at $20 each) and planned sales totaled $150,000 (12,500 units at $12 each), the effect of the unit price factor on the change in sales is a:

Select one:

a. $80,000 increase

b. $20,000 decrease

c. $30,000 increase

d. $30,000 decrease

Note: Please show how you came up with the solution.

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Finance Basics: Effect of the unit price factor on the change
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