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Ford Company manufactures a single product called GreenGoup. . GreenGoup sells for $900 per unit. The following variable costs are incurred to produce eachGreenGroup: Ford's
Ford Company manufactures a single product called GreenGoup. . GreenGoup sells for $900 per unit. The following variable costs are incurred to produce eachGreenGroup: Ford's income tax rate is 40%, and annual fixed costs are $6,600,000. Except for an operating loss incurred in the year of incorporation, the firm has been profitable over the last 5 years. Assume a 10% increase in annual fixed costs, a 20% unit cost increase for direct labor, and a reduction in unit material costs of 25%, with no change in selling price. After incorporating these changes, Ford's breakeven point would increase by (rounded to the nearest whole unit) Ford Company manufactures a single product called GreenGoup. . GreenGoup sells for $900 per unit. The following variable costs are incurred to produce eachGreenGroup: Ford's income tax rate is 40%, and annual fixed costs are $6,600,000. Except for an operating loss incurred in the year of incorporation, the firm has been profitable over the last 5 years. Assume a 10% increase in annual fixed costs, a 20% unit cost increase for direct labor, and a reduction in unit material costs of 25%, with no change in selling price. After incorporating these changes, Ford's breakeven point would increase by (rounded to the nearest whole unit)
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