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The Epol Company currently sells gourmet dog food for R1.20 per can. The variable cost is 80 cents per can and the fixed costs are
The Epol Company currently sells gourmet dog food for R1.20 per can. The variable cost is 80 cents per can and the fixed costs are R360 000 per year.
a) Calculate the break-even number of units . (4)
b) What will the increase in Earnings before interest and tax (EBIT) be at 1050 000 units of production be if the quantity sold rises to 10% above 1050 000 units. (8)
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