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Arrow sells for $34.00. Your material cost per unit is $14.00 and labor costs per unit are $12.24. Your fixed costs are $4,500. Assuming everything else remains the same, if you were to increase your automation by 2 levels (assume no overtime), how many do you have to sell to break even? Each level of automation reduces or increases labor costs by $1.12.

Reference no: EM131432552

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