The Barnam Company currently produces and sells 5,000 units of a product that has a contribution margin
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The Barnam Company currently produces and sells 5,000 units of a product that has a contribution margin of $6 per unit. The company sells the product at a selling price of $21 per unit. Fixed costs are $24,600. The company recently invested in new technology and expects the variable cost per unit to drop to $13 per unit. The investment is expected to increase fixed costs by $18,000. After making the new investment, how many units must be sold to break even? (Do not round intermediate calculations.)
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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