Determine the change in profit

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Question - Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs.

Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 85,000 units are sold during the year.

Calculate the change in profit if the selling price were reduced by $12.50 each and annual sales were to increase by 8,200 units.

Determine the change in profit if the company were to increase advertising by $116,000 and if this were to increase sales by 8,200 units.

Reference no: EM132893269

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