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1. You are given data for a company for two successive periods: Period 6 Period 7 Materials $ 300,000 $ 360,000 Labour $ 212,000 $

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1. You are given data for a company for two successive periods: Period 6 Period 7 Materials $ 300,000 $ 360,000 Labour $ 212,000 $ 247,000 Overheads $ 418,000 $ 453,000 Production level 10,000 units 12,000 units All production is sold for $ 100 per unit. Labour and Overheads include both fixed and variable costs. The relevant rage is 14,000 units. First, estimate fixed costs and BE point. The company's directors proposing to introduce a new machine whereby fixed costs will rise by $ 116,000 and variable cost will fall by $ 10 per unit. Estimate: a) The new-break even point b) The sales necessary to maintain profit at $ 140,000, using the new machine c) By how many units can sales drop before company incurs losses (use

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