Question
A company is selling a product at $8 per unit with variable costs of $2 per unit and annual sales volume of 1500 units, resulting
A company is selling a product at $8 per unit with variable costs of $2 per unit and annual sales volume of 1500 units, resulting in a yearly profit of $4000. With a new design, the variable costs have increased by 30%, fixed costs by 20%, and sales volume has increased to 2000 units per year.
What should be the new selling price to break even?
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Managerial accounting
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
1st edition
471467855, 978-0471467854
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