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The following data applies to a small business that is currently selling 425 units per month:
Monthly sales revenue = £14,875
Monthly variable costs = £8,500
Monthly fixed costs = £4,500
Problem 1: Calculate the monthly break-even output for this business. Show your workings
Problem 2: Calculate the change in profit levels, if the business achieves a 12% increase in the number of units sold next month.
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