The Millers are thinking of introducing a new product line in their store. For this exercise,...

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The Millers are thinking of introducing a new product line in their store. For this exercise, assume the following: • Total fixed costs for the line are estimated at $15,000. • Total number of units they expect to sell are 10,000, based on a market study. . • Total variable costs are $20,000. . Unit selling price is $4.50. Based on the information, answer the following questions: 1. What is the break-even point in units? 2. What is the break-even point in revenue? 3. Should they go ahead with their plan? The Millers are thinking of introducing a new product line in their store. For this exercise, assume the following: • Total fixed costs for the line are estimated at $15,000. • Total number of units they expect to sell are 10,000, based on a market study. . • Total variable costs are $20,000. . Unit selling price is $4.50. Based on the information, answer the following questions: 1. What is the break-even point in units? 2. What is the break-even point in revenue? 3. Should they go ahead with their plan?

Answer rating: 100% (QA)

To calculate the breakeven point we need to find the number of units or revenue at which the total c... View the full answer