XYZ Ltd. produces and sells a single product. The company has the following information for the current period:

Selling price per unit: $50
Variable cost per unit: $30
Fixed costs: $200,000
The company is considering implementing a new marketing campaign that is expected to increase sales volume by 20%. The marketing campaign will cost $30,000.

a) What is the current breakeven point for the company?
b) What will be the new breakeven point after the marketing campaign is implemented?

Answer rating: 100% (QA)

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