Given the following information, answer the questions: The ratio of variable cost per unit divided by selling

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Given the following information, answer the questions:

  • The ratio of variable cost per unit divided by selling price per unit equals 0.3.
  • Fixed costs amount to $60,000 .

(a) Draw the cost–volume–profit diagram .
(b) What is the break‐even point?
(c) What effect would an 8% decrease in selling price have on the break‐even point from part (b)?

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