#!# 15-22B. (Fixed costs) Sausalito Silkscreen is forecasting fixed costs next year of $375,000. The firm's single...

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#!# 15-22B. (Fixed costs) Sausalito Silkscreen is forecasting fixed costs next year of $375,000. The firm's single product sells for $25 per unit and incurs a variable cost per unit of $13. The finn may acquire some new binding equipment that would lower variable cost per unit to $11. The new equipment, however, would add to fixed costs through the price of an annual maintenance agreement on the new equipment. Ho~ large can this increase in fixed costs be and still keep the firm's present break-even point in units produced and sold unchanged?

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Financial Management Principles And Applications

ISBN: 9780131450653

10th Edition

Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.

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