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A company generates $5,000,000 in sales (1,000,000 units sold at a price of $5 per unit). its varhble costs equat 80 percent of siles ($4

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A company generates $5,000,000 in sales (1,000,000 units sold at a price of $5 per unit). its varhble costs equat 80 percent of siles (\$4 per unit), its fxed costs are $500.000. its interest erpense is equal to $100,000, its tax rate is equal to 40%, and it has 2.000,000 shares of common stock outstanding. The firm is considering a new type of machine for its existing production lines. With the new machine, fixed costs would increase to $600.000. but variable costs would decrease to $3 per unit and interest expense would increase to $150.000. One key benefit is that the comparcy can then lower its price by $0.50 per unit (that is, a price of $4.50 per unit), and this would likely double its sales to 2,000,000 units. What are the EBIT breakeven volume and the Net Income breakeven volume if they change from the existing machine to the new machine? (Sample income statements are provided below as an aid. You are not required to use them.) EBIT Breakeven =480,000 units and NI Breakeven =540,000 units its sales to 2.000,000 units. What are the E81I breabeven vohume and the kiet Incorne berakmede are prowided below as an aid. You are not required to use them EBIT Breakeven =480,000 units and NI Breakeven =540,000 units EBIT Breakeven =420,000 units and NI Breakeven =510,000 units EBIT Breakeven =440,000 units and NI Breakeven =520.000 units EBIT Breakeven =460,000 units and NI Breakeven =530,000 units BIT Breakeven =400,000 units and NI Breakeven =500,000 units

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