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The fixed cost to modify an existing facilitys layout is estimated to be $15,000,000. The new layout is expected to reduce the variable cost per
The fixed cost to modify an existing facilitys layout is estimated to be $15,000,000. The new layout is expected to reduce the variable cost per production unit by $1.25 (from $10 per unit to $8.75). If the product sells for $40 per unit, what must demand be for the modification to break even?
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