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Calculate the new break-even volume

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Reference no: EM132881218

Question - The company shows the following information about capital, costs and expected sales:

Capital investment: $3,000,000

Fixed costs: $800,000

Variable cost: $40 per unit

Expected sales: 5,000 units

Desired return on sales is at 15%.

Required -

1. Calculate the break-even volume.

2. A new machine is added $1,000,000 to the factory, calculate the new break-even volume.

Reference no: EM132881218

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