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Illustration: Original cell phone sales and cost data for Vargo Electronics is as shown. Unit selling price $500 Unit variable cost $300 Total fixed costs

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Illustration: Original cell phone sales and cost data for Vargo Electronics is as shown. Unit selling price $500 Unit variable cost $300 Total fixed costs $200,000 Break-even sales $500,000 or 1,000 units Case II: Management invests in new equipment that will lower the amount of direct labor required to make cell phones. They estimate that total fixed costs will increase 30% and variable cost per unit will decrease 30%. What effect will the new equipment have on the sales volume required to break even

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