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Bytes Company currently produces and sells 4,000 units of a product that has a contribution margin of $5 per unit. The company sells the product
Bytes Company currently produces and sells 4,000 units of a product that has a contribution margin of $5 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $20,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $15,000. After the new investment is made, how many units must be sold to break-even?
A. 2,917 units
B. 4,375 units
C. 7,000 units
D. None of these
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