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EZ Print LTD . produces and sells printing products across Canada. Last year, sales volume totaled $ 8 5 0 , 0 0 0 .
EZ Print LTD produces and sells printing products across Canada. Last year, sales volume totaled $ Volume for the first five months of the current year totaled $ and sales were expected to be $ million for the entire year. Unfortunately, the printing business in the region where EZ Print is located is extremely competitive. More than printing shops are all competing for the same business.
The company currently manufactures one type of highquality printer with the average unit selling prices, unit variable costs, and direct fixed costs are as follows:
Required:
Calculate the following:
a Number of printers that are expected to be sold during the current year
b number of printers that must be sold for EZ Print to break even
c sales dollars in order to break even
d generate a graph which plots the break even analysis
EZ Print can buy machines that will make the majority of the printer parts. If the company chooses to purchase the machines, the variable costs will decrease by but the fixed costs will increase by $ The plan would be to purchase the machine at the beginning of July. Fixed costs for the company are incurred equally throughout the year. Calculate the following:
a impact on operating income
b new number of printers to break even
c sales
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