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5-6 Break-even analysis [LO2] Jay Linoleum Company has fixed costs of $356,000. Its product currently sells for $15 per unit and has variable costs per
5-6 Break-even analysis [LO2] Jay Linoleum Company has fixed costs of $356,000. Its product currently sells for $15 per unit and has variable costs per unit of $7.00. Mr. Thomas, the head of manufacturing, proposes to buy new equipment that will cost $410,000 and drive up fixed costs to $490,000. Although the price will remain at $15 per unit, the increased automation will reduce variable costs per unit to $5.00. (a) Compute the following break-even points? Break-even point (before) units Break-even point (after) units (b) As a result of Thomas
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