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Management believes it can sell a new product for $ 8 . 0 0 . The fixed costs of production are estimated to be $
Management believes it can sell a new product for $ The fixed costs of production are estimated to be $ and the variable
costs are $ a unit.
a Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and
variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to
enter losses, if any.
b Determine the breakeven level using the above table and use the Exhibit to confirm the breakeven level of output. Round
your answers for the breakeven level to the nearest whole number. Round your answers for the fixed costs, variable costs, total
costs, and profits losses to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any.
c What would happen to the total revenue schedule, the total cost schedule, and the breakeven level of output if management
determined that fixed costs would be $ instead of $ Round your answer for the breakeven level of output to the
nearest whole number.
If fixed costs were $ instead of $ the total revenue schedule
and the total cost schedule
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