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EcoFuel Inc. produces biofuel and is considering introducing a new product line. The company estimates the following costs and revenues for the new product: Selling
EcoFuel Inc. produces biofuel and is considering introducing a new product line. The company estimates the following costs and revenues for the new product:
- Selling Price per Unit: $50
- Variable Costs per Unit: $20
- Fixed Costs: $100,000
Determine the breakeven point in units and sales revenue for the new product line. Discuss the implications of the analysis for the decision to launch the new product.
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