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IBM2010 ACCOUNTING AND FINANCIAL MANAGEMENT ASSIGNMENT : BREAK-EVEN ANALYSIS (4%) . Through blackboard, upload Handwritten copy for calculation and upload this page with your final

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IBM2010 ACCOUNTING AND FINANCIAL MANAGEMENT ASSIGNMENT : BREAK-EVEN ANALYSIS (4%) . Through blackboard, upload Handwritten copy for calculation and upload this page with your final answer pdf or doc) The Millers are thinking of introducing a new product line in their store. Total Fixed Costs for the line $15,000 Total number of units they expect to sell 10,000 units Total variable costs $20,000 Unit Selling Price $4.50 Depreciation (part of Fixed Costs) $2.000 Profit Objective $4.000 Based on this information, answer the following questions 1. What is the Break-Even Point in Units? Ans 2. What is the Break Even Point in Revenue? Ans 3. What is the Cash Break-Even Point in units? Ans What is the Cash Break-Even Point in Revenues? Ans What is the Profit Break Even Point in units? Ans What is the Profit Break-Even Point in Revenues? Ans . Should they go ahead with their plan? Why or why not? Ans Sensitivity Analysis: If fixed costs were increased by $5,000 and variable costs and unit selling price remained unchanged, what would be the new PV Ratio and the Break-Even Point in units and in Revenue? Ans

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