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Problem:

Suppose that a company sells its product for $50 per unit. It was believed that the break even units would be 8,500, but an unexpected increase in fixed expenses of $33,878 occurred. The contribution margin per unit is $26 (there was no change in variable costs).

Required:

Question: What was the actual break even units?

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164023

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