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Question - A manufacturer plans to introduce a new type of shirt based on the following information.
The selling price is $35.00; variable cost per unit is $15.00; fixed costs are $8200.00; and capacity per period is 740 units.
a) Calculate the break-even point
(i) in units
(ii) in dollars
(iii) as a percent of capacity
b) Draw a detailed break-even chart.
c) Calculate the break-even point (in units) if fixed costs are reduced to $7000.00.
d) Calculate the break-even point (in dollars) if the selling price is increased to $40.00.
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