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ABC Inc. manufactures and sells a single product. The selling price per unit is $100, variable cost per unit is $60, and fixed costs amount
ABC Inc. manufactures and sells a single product. The selling price per unit is $100, variable cost per unit is $60, and fixed costs amount to $30,000. Additionally, the company is considering implementing a cost-saving measure that could reduce variable costs by $10 per unit but would incur an additional fixed cost of $5,000. Conduct a sensitivity analysis to determine the impact of this cost-saving measure on the breakeven point and net income.
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