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Company PQR produces a single product with a selling price of $60 per unit. Fixed costs, including administrative expenses and depreciation, amount to $40,000. Variable
Company PQR produces a single product with a selling price of $60 per unit. Fixed costs, including administrative expenses and depreciation, amount to $40,000. Variable costs, comprising raw materials and direct labor, total $25 per unit. Calculate the breakeven point in units and dollars, and discuss strategies for cost reduction.
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