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Kangaroo Company produces a single product. Sales for the current year are 25,000 units Relevant data: Selling price/unit Variable cost/unit Fixed costs 130 80 1,300,000
Kangaroo Company produces a single product. Sales for the current year are 25,000 units Relevant data: Selling price/unit Variable cost/unit Fixed costs 130 80 1,300,000 What is Kangaroo's net income for the current year? Compute Kangaroo's breakeven point in sales units Marketing Director believes that unit sales would increase by 20% if the price were cut by 10%. Should Kangaroo take this action? Explain. Production Manager is considering outsourcing the production of some parts. This would reduce fixed costs to $1,000,000, but increase variable cost/unit to $100. What would the breakeven point be if this action were taken? a) b) d)
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