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Calculate the change in profit levels

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Reference no: EM133028335

Question - 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

1) Calculate the monthly break-even output for this business. Show your workings.

2) Calculate the change in profit levels, if the business achieves a 12% increase in the number of units sold next month.

Reference no: EM133028335

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