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4 (10 marks) Grand Ltd developed the following information for its product: Sales price Variable cost Total fixed costs Required: Per Unit $80 $53 $1,450,000
4 (10 marks) Grand Ltd developed the following information for its product: Sales price Variable cost Total fixed costs Required: Per Unit $80 $53 $1,450,000 Answer the following independent questions and show computations using the contribution margin technique to support your answers. a) How many units must be sold to break-even? (2 marks) [Answer and show workings here] BAP11 Trimester 1 2022 FEX approved WRS Page 11 of 19 c) If the company is presently selling 75,000 units, but plans to spend an additional $135,000 on an advertising program, how many additional units must the company sell to earn the same profit it is now making? (2 marks) [Answer and show workings here] C
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