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Cost/Volume/Profit practice Juno Co. sells a product for $30 a unit. Variable costs to produce a unit are $15. Fixed costs are $30,000. A)
Cost/Volume/Profit practice Juno Co. sells a product for $30 a unit. Variable costs to produce a unit are $15. Fixed costs are $30,000. A) What is Juno's breakeven sales in units and in dollars? B) How much would Juno make in operating income if they sold 3,500 units? C) How many units does Juno need to sell to make $40,000 of operating income? D) If Juno automated some of their production process they could reduce the variable costs to $10 a unit. Fixed costs would increase by $15,000. Would you recommend making the change? Why or why not?
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