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Texron Inc. is a manufacturer of water pumps used in commercial and municipal water systems. It is introducing a new water pump to its customers.
Texron Inc. is a manufacturer of water pumps used in commercial and municipal water systems. It is introducing a new water pump to its customers. This pump has variable manufacturing costs of $75.00 per pump and variable overhead costs of $21.00 per pump. It has fixed costs, excluding depreciation expense of $565,000, and depreciation expense of $225,000. It plans to sell 5,000 pumps in the first year it introduces the product to customers. A. Assuming a selling price per pump of $285, what would be the operating cash flow break-even number of pumps that have to be sold? B. Assuming the same selling price in B above. How pumps would have to be sold for accounting break-even? SHOW YOUR WORK BELOW FOR CREDIT A. B. ; FC FC D D vc OCF break-even units VC Accounting break-even units
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