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Narchie sells a single product for $60. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $480,000.
Narchie sells a single product for $60. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $480,000. Current sales total 17,000 units. If Narchie breaks even by selling 20000 units, after the break -even pointeach unit that Narchie sells will:
increase profit by some other amount.
increase profit by $24.
increase profit by $60.
decrease profit by $6.
increase profit by $36.
How do I go about solving this? Kindly provide a step by step solution. Thanks in advance.
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