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Part F. Inyo County, Inc. sells its only product for $50 per unit. The variable cost per unit is $30 and the firm has fixed

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Part F. Inyo County, Inc. sells its only product for $50 per unit. The variable cost per unit is $30 and the firm has fixed costs totaling $4,000. You may find it useful to check your answers using the contribution margin income statement: Revenues - Variable costs - Contribution margin - Fixed costs -Income Required: 1. Compute the number of units Inyo County must sell in order to break even. 2. Determine sales revenues (in dollars) if the firm plans for $2,500 in pretax profit. 3. Assume that Inyo County expects to earn $3,000 of pretax profit under its original assumptions (selling price $50, variable cost $30, and fixed cost of $4,000) by selling 350 units. The firm can decrease its fixed costs to $2,000 if it is willing to increase variable costs to $35 per unit. Should the company change its cost structure? Current Proposed Revenues -Variable costs - Contribution margin -Fixed costs = Income

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