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You are working as a cost accountant of Proctor and Gamble Companys Pringles Manufacturing division. Currently the demand of pringles is 15000 units a month.
You are working as a cost accountant of Proctor and Gamble Companys Pringles Manufacturing division. Currently the demand of pringles is 15000 units a month. The company is selling one package at a price 430. The variable cost is 290 and fixed cost is 18000. The company expects that sales manager will be selling price by 30 per unit and launch a new advertising campaign to create awareness among people having the budget of 15000. It will lead to increase in sales of total 1700 units a month.
What would you decide in this case?
Prepare breakeven chart of the company to depict the breakeven point of the company in dollars and in units.
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