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The zenith manufacturing corporation sells a certain product at a price of 50 each. the variable costs involved in the manufacture of this product are 35 per unit. last year, the fixed costa were 600,000. difficult financial conditions compel management to adopt a cost-reduction scheme next year, thereby reducing variable costs to 25 per unit and fixed costs to 500,000.

a. how many units were sold last year to break even

b. how many units must be sold next year to break even

c. how many units must be sold next year for profit to be 10% of sales

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Accounting Basics, Accounting

Category:- Accounting Basics
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