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20. Small Company's info: 800 000 Sales: 8 poo units Price per unit: $10 Sales: 80000 VC= 24000 CM 56000 Variable Costs: 30% of sales

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20. Small Company's info: 800 000 Sales: 8 poo units Price per unit: $10 Sales: 80000 VC= 24000 CM 56000 Variable Costs: 30% of sales Degree of Operating Leverage: 4 The company is considering the purchase of a new machine that would replace the portion of the direct labor cost. This new machine would increase company's fixed expenses by Sox but will reduce variable expenses per unit of product to 20% of the product's sales price. Determine the indifferent point in sales revenue at which the company will earn the same profit under both the old scenario (without the machine) and the new scenario (with the machine). TE 150'). a. $3,890,000 VE 100% b. $1,450,000 DODL= CM DOLINOS c. $2,100,000 d. $1,860,000 e. None of the above Tried all auswers

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