Edward Industries is planning on purchasing a new piece of equipment that will increase the quality of its production It hopes the increased quality will generate more sales The company 's contribution margin ratio is 20 , and its current breakeven point is $300,000 in sales revenue If Edward Industries ' fixed expenses increase by $40,000 due to the equipment, what will its new breakeven point be (in sales revenue)

Question: Edward Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will

Edward Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's ratio is 20%, and its current breakeven point is $300,000 in sales revenue. If Edward Industries' fixed expenses increase by $40,000 due to the equipment, what will its new breakeven point be (in sales revenue)?

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