Find how many units must be sold to break even

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Reference no: EM132562604

selling price per unit $90

variable cost per unit $30

setups $800 with 90 level of activity driver

inspection $65 with 500 level of activity driver

total fixed costs (traditional) $900000

total fixed costs (ABC) $450000

Question 1: If the company reduces the set up costs by $100 per set up and reduces the number of inspection 400, how many units must be sold to break even?

Reference no: EM132562604

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