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Question 3 Because of Smart Watch Company's extraordinary expansion plan, their fixed costs are expected to skyrocket in the next year due to hiring, long-term
Question 3 Because of Smart Watch Company's extraordinary expansion plan, their fixed costs are expected to skyrocket in the next year due to hiring, long-term asset purchases, and so on. The plant manager expects fixed costs to increase to $3,000,000. It sells watches for $500, and the variable costs for each are $75. Based on this information, your manager asks you to determine the following amounts: 1. the break-even point in units, 2. the break-even point in sales dollars, and 3. the number of units needed to be sold for a profit of $750,000
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