Price of an environmentally friendly water bottle is $10 and the variable cost is $5.50. At this price, 4000 bottles are sold in December 2018. If in February 2019, the price of the bottle is dropped by 5%, how many units of bottles should be sold to maintain the contribution margin as it was in December 2018. In addition, if in February 2019, the variable cost also increases by $800, what would be the new break even sales?

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To determine the number of units that should be sold in February 2019 to maintain the contribution m... View the full answer