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A company had the following cost structure for the sale and production of 20,000 units: Selling Price $20.00 Direct Materials 3.00 Direct Labor 2.00 Variable
A company had the following cost structure for the sale and production of 20,000 units: Selling Price $20.00 Direct Materials 3.00 Direct Labor 2.00 Variable Overhead 2.50 Fixed Overhead 4.00 Variable Selling Expenses 1.50 Fixed Administrative Expenses 2.25 Net Income 4.75 How much will break-even point sales in dollars change if the cost of direct materials increases by 10%, direct labor decreases by 10%, and fixed overhead decreases by 5%?
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