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We have the following information for SABIC Co, and breakeven analysis is required based on the below: Variable cost per unit $20 Selling price $30
We have the following information for SABIC Co, and breakeven analysis is required based on the below:
Variable cost per unit $20
Selling price $30
Total Fixed cost $ 50,000
Expected sales 8000 units
Target Profit $20,000
1. Compute the break-even volume and value.
2. Interpret the breakeven computation.
3. Compute the quantity of sales that achieve the target profit.
4. If the variable cost increased by 20%, what is the impact on break-even volume.
5. If the fixed cost decreased by 20%, what is the impact on the break-even volume.
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