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Suppose you are the manager of a firm. The accounting department has provided cost estimates, and the sales department sales estimates, on a new product.
Suppose you are the manager of a firm. The accounting department has provided cost estimates, and the sales
department sales estimates, on a new product. Analyze the data they give you, shown below, determine what it will
take to break even, and decide whether to go ahead with production of the new product.
Cost is Cxx and revenue is Rxx no more than units can be sold
The breakeven quantity is units, which is
produce the product because it would
than the number of units that can be sold, so the firm
money
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