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Use the following data for the next 3 problems

Roxie's Surf Shop is expanding their product line, adding a high end surf board to their existing basic product.

Their fixed costs for the equipment needed for the new boards is $5700 per month.

The new board will cost $278 per board and they can be sold for $450.

1.) How many new boards per month will they need to sell to breakeven quantity per month?

2.) If the fixed costs are reduced to $4800 per month what is the new breakeven quantity?

3.) If the fixed costs stay at $5300 and they want to have at least $1000 per month in profit how many boards should they sell?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92873130

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