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A firm has the following income statement for a month. Sales: 3,000 units at $80/unit $240,000 Cost of Goods Sold Variable Production Cost Fixed Production

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A firm has the following income statement for a month. Sales: 3,000 units at $80/unit $240,000 Cost of Goods Sold Variable Production Cost Fixed Production Cost Less: 180,000 19,800 Gross Margin 40,200 Selling and Administrative Expenses Variable Selling Cost Fixed Selling Expenses 21,000 7,500 Net Income Before Taxes 11,700 3. If its variable production costs increase by $4 per unit, what will be its breakeven output? 4. After the increase in costs in 3, what output will it need to sell if it wishes to have the $18,000 monthly pretax profit stated earlier? 5. Given the variable production cost increase but no change in fixed costs, what will be the firm's monthly profit if it sells 4,000 units of output per month

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