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Currently, the unit selling price is $50, the variable cost, $34, and the total fixed costs, $106,000. A proposal is being evaluated to increase the selling price to $54.

(a) Compute the current break-even sales (units).

(b) Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9981190

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