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Complete the following problems. Your work needs to be presentable and legible. Additionally, you will need to show any required calculations. Any incomplete work will
Complete the following problems. Your work needs to be presentable and legible. Additionally, you will need to show any required calculations. Any incomplete work will automatically receive zero points and will NOT be graded. Werth & Garza Manufacturing's sales slumped badly in 2013 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500.000 units of product: net sales $2, 125,000; total costs and expenses $2, 500,000; and net loss $375,000. Costs and expenses consisted of the following: Management is considering the following alternative for 2013: Purchase new automated equipment that will change the proportion between variable and fixed expenses sold to 45% variable and 55% Fixed. (a) Compute the break-even point in dollars for 2013. (b) Compute the break-even point in dollars under the alternative course of action
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