Currently, the unit selling price of a product is $ 125, the unit variable cost is $

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Currently, the unit selling price of a product is $ 125, the unit variable cost is $ 105, and the total fixed costs are $ 460,000. A proposal is being evaluated to increase the unit selling price to $ 130.

a. Compute the current break-even sales (units).

b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

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Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: Jun 27, 2014 02:46 AM

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Currently, the unit selling price of a product is $ 125, the unit variable cost is $

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