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Currently Finch Corporation sells bird feeders for $80 a feeder and the cost of each feeder is $55. Total fixed costs were $150,000 per month.
Currently Finch Corporation sells bird feeders for $80 a feeder and the cost of each feeder is $55. Total fixed costs were $150,000 per month. Management is considering the use of an automated production equipment. If this were done, variable costs would drop to $50 a feeder and fixed costs would increase by an additional $10,000 a month. What is the break-even point in units if Finch Corporation buys the new equipment?
Currently Finch Corporation sells bird feeders for $80 a feeder and the cost of each feeder is $55. Total fixed costs were $150,000 per month. Management is considering the use of an automated production equipment. If this were done, variable costs would drop to $50 a feeder and fixed costs would increase by an additional $10,000 a month. What is the break-even point in units if Finch Corporation buys the new equipment?
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