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Question: Most popular product is 50%. The product is priced at $95, annual fixed expenses are $875,000. Management is evaluating two options: (1) lowering variable costs by 10% and (2) reducing fixed expenses by 10%.
Required:
Calculate the current level of break-even sales in dollars, as well as the break-even sales for the two options. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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