Question: Compact computers produce a notebook model for which the cost of setting up production is $1,250,000, and the variable cost is $750 per computer. Compact

Compact computers produce a notebook model for which the cost of setting up production is $1,250,000, and the variable cost is $750 per computer. Compact Computers sells its notebook model at $1,000 each

How do we find the break-even production level? and how to we calculate the compact computers introduce a new production method which reduces the variable cost to $500. If they want to sell the same number of computers as found in part a), what will be the new selling price? (3 marks)

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