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M) Chapter 20 Techno Designs produces head covers for gulf clubs. The company expects to generate a profit next year. It anticipates fixed manufacturing costs
M)
Chapter 20 Techno Designs produces head covers for gulf clubs. The company expects to generate a profit next year. It anticipates fixed manufacturing costs of $126,500; Fixed general and administrative expenses of $82,030 for the year. Variable manufacturing and selling costs per set of head covers will be $4.65 and $2.75, respectively. Each set will sell for $13.40; Required:
Compute the breakeven point in sales units and compute the breakeven point in sales dollars;
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