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Problem
Patsy smith is planning to sell her special knife for $15 per unit. She purchases units from a local distributor for $6 each. She can return any unsold units for a full refund. Fixed costs for booth rental, including lighting and security is $450.
Required
i. Compute the breakeven point in units sold.ii. Suppose the unit purchased is $5 instead of $6 but the selling price is unchanged. Compute the new breakeven point in units sold.
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