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Scott Incorporated has been in business for several months. Because of increased competition in the region for partadapters, the managers at Scott Incorporated is considering
Scott Incorporated has been in business for several months. Because of increased competition in the region for partadapters, the managers at Scott Incorporated is considering cutting sales price from
$32 per adapter to $ 28
per adapter.
New sales price per poster
$ 28
Variable price per adapter
$ 25
New contribution margin per adapter
$3
If the variable expenses remain at
$25 per adapter and the fixed expenses remain at
$6,300, how many adapters will the managers need to sell to breakeven? Compute the breakeven sales in units.
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