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Last year's income statement for a company that produces a single product is presented below: (16 points) Sales (20,000 units) $1,218,000 Variable costs 812,000 Contribution

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Last year's income statement for a company that produces a single product is presented below: (16 points) Sales (20,000 units) $1,218,000 Variable costs 812,000 Contribution margin $406,000 Fixed costs 300,000 Operating income $106.000 Compute the break-even point in units. (4 pts) Elegir... . Compute the break-even point in sales dollars. (4 pts) Elegir... Elegir... Compute the variable cost ratio. (2 pts) This company is considering an investment that will increase fixed costs by 40%, but will lower variable costs to 55% of sales. Units sold will remain unchanged. Assuming the investment is made, what is the new preak-even point in units? Should the company make the investment? Explain. (6 pts) Elegir

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