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Pharmaceuticals has developed the following data for the 20,000 units of new medicines they hope to produce and sell in the following month: Direct materials

Pharmaceuticals has developed the following data for the 20,000 units of new medicines they hope to produce and sell in the following month: Direct materials Direct labour Variable overhead Fixed overhead Variable selling & admin expenses Fixed selling & admin expenses $100,000 $50,000 $80,000 $30,000 $48,000 $32,000 Required: a) At sales price of $38.00 per unit, how many units would Ganges have to sell in order to break-even? b) At a sales price of $43.00per unit, how many units would Ganges have to sell in order to produce a profit of $20,000? c) If 16,000 units were sold, what price would Ganges have to charge in order to produce a profit of $42,000 d) Provide one example of management decisions that benefit from cost-volume-analysis (CVP)image text in transcribed

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