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Endorphins, Inc. is debating whether to change its cost structure so that variable costs increase from $4 per unit to $5 per unit but fixed
Endorphins, Inc. is debating whether to change its cost structure so that variable costs increase from $4 per unit to $5 per unit but fixed costs decrease from $400,000 to $300,000. The current level of sales is 100,000 units.
(T or F) If the sales price is $8 per unit, Endorphins the new cost structure will not change the break-even point.
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