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Part 3 Travelco sells one of its products, a piece of soft sided luggage, for $60. Variable cost per unit is $34, and monthly
Part 3 Travelco sells one of its products, a piece of soft sided luggage, for $60. Variable cost per unit is $34, and monthly fixed costs are $60,000. A combination of changes in the way Travelco produces and sells this product could reduce per-unit variable cost to $28 but increase monthly fixed costs to $104.000. Required 1. Determine the monthly break-even points under the 2 available alternatives. 2. Determine the indifference point of the 2 alternatives.
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