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O'KeefeO'Keefe Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will

O'KeefeO'Keefe Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's contribution margin ratio is 4040%, and its current breakeven point is $ 650 comma 000$650,000 in sales revenue. If the company's fixed expenses increase by $ 30 comma 000$30,000 due to the equipment, what will its new breakeven point be(in sales revenue)?
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Part 1
If O'KeefeO'Keefe Industries' fixed expenses increase by $ 30 comma 000$30,000 due to the equipment, what will its new breakeven point be(in sales revenue)?
Begin by identifying the general formula to compute the breakeven sales in dollars.
(
Fixed expenses
+
Operating income
)-:
Contribution margin ratio
=
Breakeven sales in dollars
Part 2
O'Keefe will now have to generate
of sales revenue to break even.

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