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Blossom Company manufactures a product which sells for $ 2 0 each. Each unit of product has a variable cost of $ 5 to manufacture.
Blossom Company manufactures a product which sells for $ each. Each unit of product has a variable cost of $ to manufacture. Fixed costs normally incurred are $ Blossom Company is considering automating the manufacturing process, which would require a capital investment which would increase fixed costs by $ As a result of the automation, variable costs would decrease by What would the new breakeven level in units be for Blossom Company if it decides to automate the manufacturing process?
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