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Caterpillar Inc. currently spends 300,000 in direct materials, 450,000 in direct labor, and 300,000 in overhead. This cost is incurred for 250,000 units. The company

Caterpillar Inc. currently spends 300,000 in direct materials, 450,000 in direct labor, and 300,000 in overhead. This cost is incurred for 250,000 units. The company plans to sell each item at 6. The company initially computed a break-even point of 100,000 units. However, the company has found out that only 1/6th of the overhead is fixed. What is the correct break-even point?

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