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New Balance is one of the best sportswear brands in the world. To produce shoes, the variable material cost is $35 per unit and variable
New Balance is one of the best sportswear brands in the world. To produce shoes, the variable material cost is $35 per unit and variable labor cost is $4 per unit. a. What is the variable cost per unit? b. Suppose that New Balance Fixed cost of $77,000 during a year in which total production of 9,500 units. What are the total costs for the year? c. If the selling price is $85 per unit, what is New Balance quantity break-even on cash basis? If depreciation is $10,000 per year, what is the quantity accounting break-even point?
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