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GHI Corporation manufactures and sells a single product. The selling price per unit is $50, and the variable cost per unit is $30. The company's
GHI Corporation manufactures and sells a single product. The selling price per unit is $50, and the variable cost per unit is $30. The company's fixed costs amount to $200,000 per year.
Conduct a detailed cost-volume-profit (CVP) analysis for GHI Corporation. Determine the breakeven point in units and dollars, as well as the sales volume required to achieve a target net income of $100,000. Provide insights into the company's profitability and sensitivity to changes in sales volume.
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