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Kyle is studying the feasibility of producing a new product. His existing facility has a capacity to manufacture 2 0 0 0 new units per
Kyle is studying the feasibility of producing a new product. His existing facility has a capacity to manufacture new units per units per month. The unit cost is $ Estimated fixed costs are $ per year and variable costs are $ per unit. Competitors sell a similar product for $ each.
a What is the breakeven point?
b What is the above breakeven point as a percentage of capacity?
c What would the monthly net income be at capacity?
dWhat would unit sales have to be to attain a monthly net income of $
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