At what selling price do we break even

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A product currently sells for $12 per unit. The variable costs are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable costs by 20% and Fixed Costs by 10% but sales will increase to 12,000 units per year. (a) At what selling price do we break even, and (b) If the selling price is to be kept same ($12/unit) what will the annual profit be?

Reference no: EM132273470

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