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Question - Zachary Corporation produces products that it sells for $15 each. Variable costs per unit are $7, and annual fixed costs are $164,800. Zachary desires to earn a profit of $27,200.
Required -
a. Use the equation method to determine the break-even point in units and dollars.
b. Determine the sales volume in units and dollars required to earn the desired profit.
Component from the outside supplier under these circumstances, what would be the impact on annual operating income due to accepting the offer?
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