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Question - A business has monthly selling expenses of $ 50,000 and administration of $ 80,000. Current monthly sales are 8,000 units at a unit price of $ 350. Its cost of sales is $ 1,344,000 per month.
a. Calculate the number of units that the company needs to sell to break even and meet its costs and expenses.
B. Determine the breakeven point in units, if the company increases its variable costs by $ 5 per unit.
C. Make the comparative income statement of the two previous items, as a check of the equilibrium point.
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