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Mates Company currently produces and sells 12,000 units of a product that has a contribution margin of $8 per unit. The company sells the product
Mates Company currently produces and sells 12,000 units of a product that has a contribution margin of $8 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $37,800. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $20,000. After the new investment is made, how many units must be sold to breakeven? (Do not round intermediate calculations.) O 5600 units 4200 units O 6700 units O 7225 units
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