Question
Because of EDC's massive expansion plan, their fixed costs are expected to skyrocket in the next year due to hiring, long-term asset purchases, and so
Because of EDC's massive expansion plan, their fixed costs are expected to skyrocket in the next year due to hiring, long-term asset purchases, and so on. The plant manager expects fixed costs to increase to $800,000. They sell desks for $700, and the variable costs for each are $45. Based on this information, your manager asks you to determine the following amounts:
- the break-even point in units,
- the break-even point in sales dollars, and
- the number of units needed to be sold for a profit of $200,000.
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
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