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Eze is geared to process a hundred garments a day, but currently is receiving only fifty. How would the economies of the business change if he increased throughput to 70%? What about 80%? You may assume the following cost structure: fixed monthly costs of 33,000; variable cost of processing a typical shirt of 55; tariff per shirt of 100.
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The role and process of recognising depreciation in accounting reports, and by identifying accounting concepts which provide the justification for recognising depreciation.
Compute the breakeven point in sales dollars and find the new breakeven point in sales units if the fixed costs go up by $10,125.
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