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Wedgovia is considering investing in an additional factory to increase its overall capacity. The cost of this new investment is $,150,000. They sell a homogenous

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Wedgovia is considering investing in an additional factory to increase its overall capacity. The cost of this new investment is $,150,000. They sell a homogenous product and compete in an industry where there is little differentiation. The per unit selling price of the product in the market fluctuates between $110 and $130. The per unit variable cost currently stands at $100. Over the last several years variable costs have been steadily increasing at the rate of 2% per year. The total market size for the products sold is 5,000,000 units. The market on average has registered growth between 2% and 5% over the last several years. Their market share has been steady at around 10%. Compute the Break Even Point in a scenario where the market expects prices to remain pessimistic

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