Manatee Manufacturing produces lawn mower engines that sell for $90 per engine. The variable cost per engine
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Manatee Manufacturing produces lawn mower engines that sell for $90 per engine. The variable cost per engine is $60 dollars. Fixed costs are $24,000. What is Manatee’s break-even in units and dollars? If variable costs increase by $5, what is the new break-even in units and dollars? Manatee believes they can increase the selling price by $3 per unit without losing any sales. Under this scenario, how many units would Manatee need to sell to break-even? Manatee sells 1,000 engines. What is the amount of operating income generated by this number of engine sales with the increased variable cost and the increased selling price per engine?
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