Question: Roadside Inc's new product would sell for $41.22. Variable cost of production would be $13.42 per unit. Setting up production would entail relevant fixed costs
Roadside Inc's new product would sell for $41.22. Variable cost of production would be $13.42 per unit. Setting up production would entail relevant fixed costs of $310,796. The project cannot go forward unless the new product would earn a return on sales of 14%. Calculate breakeven sales in UNITS, meeting the profit target. (Rounding: tenth of a unit.)
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