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Shipping Supply has fixed operating costs of $50,000. Sales price is $15 per unit and VC $5 per unit. Their operating breakeven is 5,500 units.
Shipping Supply has fixed operating costs of $50,000. Sales price is $15 per unit and VC $5 per unit. Their operating breakeven is 5,500 units. True or False? Continuing with Shipping Supply, they are analyzing a purchase that would increase operating fixed costs by $12,000 and decrease VC by $2. This change would decrease operating breakeven. True or False Continuing with Shipping Supply, If they proceed with increasing fixed operating costs to lower variable costs, they will increase their business risk? True or False
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