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Apple analyzes a new product with fixed costs $7,000,000, variable cost $40/unit, and selling price $60/unit. Requirements: Calculate the break-even point in units and revenue.

  1. Apple analyzes a new product with fixed costs $7,000,000, variable cost $40/unit, and selling price $60/unit.
    • Requirements:
      • Calculate the break-even point in units and revenue.
      • Prepare a break-even chart.
      • Assess the impact of a 10% increase in fixed costs on the break-even point.
      • Analyze the effect of changing the selling price to $55/unit on profitability.

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