Your shoe factory has a production capacity of 10,000 units per month. Your fixed costs are $200,000, your variable cost of production is $30, and you sell each pair for $35. The problem is that this requires you to sell 40,000 pairs of shoes each month just to break even—which is physically impossible given your production capacity. Assuming that you will always be able to sell out your current production capacity, which of the following changes would allow you to break even?

Answer rating: 100% (QA)

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