Currently, the unit selling price of a product is $300, the unit variable cost is $225, and

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Currently, the unit selling price of a product is $300, the unit variable cost is $225, and the total fixed costs are $720,000. A proposal is being evaluated to increase the unit selling price to $345.

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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Accounting

ISBN: 978-0324401844

22nd Edition

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

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