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Exercise 3-6A (Algo) Cost structure, risk, and the break-even point LO 3-2 Solomon Company produces a product that sells for $59 per unit and has

Exercise 3-6A (Algo) Cost structure, risk, and the break-even point LO 3-2

Solomon Company produces a product that sells for $59 per unit and has a variable cost of $27 per unit. Solomon incurs annual fixed costs of $188,800.

Required

  1. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.)

  2. Calculate the break-even point assuming fixed costs increase to $300,800. (Do not round intermediate calculations.)

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