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Company put into advertising

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ABC Publishing sells maps for $7.00 each. The company is currently breaking even with sales of 200,000 maps per year. ABC's variable cost per map is currently $5.00. Management has estimated that if production costs are reduced, the variable cost per map will drop by $1.00 per unit. Assume ABC does reduce its production costs and map sales remain constant; how much more money can the company put into advertising (a fixed cost) and still break even?

Reference no: EM131318272

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