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New technology would increase fixed cost by $275000 and decrease variable cost by 15%. As a result of these changes, break even point will change
New technology would increase fixed cost by $275000 and decrease variable cost by 15%. As a result of these changes, break even point will change from 9000 units to 9500 units. Current sales 9800 units per year and expected to grow by 5% each year for the next five years. Should we make this change?
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Equity Asset Valuation
Authors: Jerald E Pinto, CFA Institute
3rd Edition
1119850517, 978-1119850519
