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Currently, the unit selling price of a product is $300, the unit variable cost is $225, and the total fixed costs are $720,000. A proposal is being evaluated to increase the unit selling price to$345.

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?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797335

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