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Starbucks Corporation is conducting a break-even analysis for a new product. The following data is available: Fixed Costs: $500,000 Variable Cost per Unit: $2 Selling
Starbucks Corporation is conducting a break-even analysis for a new product. The following data is available:
- Fixed Costs: $500,000
- Variable Cost per Unit: $2
- Selling Price per Unit: $5
Requirements:
- Calculate the break-even point in units.
- Determine the break-even point in sales dollars.
- Compute the margin of safety in units if the expected sales volume is 300,000 units.
- Analyze the impact on break-even point if fixed costs increase by 10%.
- Evaluate the feasibility of the new product.
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