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Question - Break-even point

Currently, the unit selling price of a product is $160, the unit variable cost is $120, and the total fixed costs are $725,000. A proposal is being evaluated to increase the unit selling price to $170.

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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  • Category:- Accounting Basics
  • Reference No.:- M92767758
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