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Use below information for Questions 4 to 6: Seluk Inc. produces two types of products, Type A and Type B. Type A is sold for
Use below information for Questions 4 to 6: Seluk Inc. produces two types of products, Type A and Type B. Type A is sold for $155 and has variable costs of $95. Type B sells for $164 and has variable costs of $81. Seluk Inc. sells two Type A for every three Type B sold. Fixed costs equal $1,250,000. Q-4) What is the breakeven point in total dollars at the current sales mix? Q-5) Mnir Nurettin Bey, the owner of Seluk Inc., is considering buying new production equipment. The new equipment will increase fixed cost by $250,000 per year and will decrease the variable cost of the Type A and Type B by $5 and $10, respectively. Assuming the same sales mix, how many of Type A does Seluk Inc. need to sell to break even? Q-6) Assuming the same sales mix, at what total sales level would Seluk Inc. be indifferent between using the old equipment and buying the new production equipment
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