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Allwill Products distributes a single product, a decorative plate whose selling price is $10 and whose variable cost is $6 per unit. The company's monthly fixed expense is $7,500.
Required:
Problem 1: Calculate the company's break-even point in unit sales.
Problem 2: Calculate the company's break-even point in dollar sales.
Problem 3: If the company's fixed expenses increase by $500, what would become the new breakeven point in unit sales? In dollar sales?
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