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XYZ Company sells 2 models of washing machine, Model A and Model B. For every 2 Model A sold, 3 Model B are sold. XYZ Company incurs $1,120,000 in fixed costs per month. The following information is also provided:
Model A Model B
Sales per unit $450 $700
Variable Cost per unit $250 $300
CM per unit $200 $400
Question 1: How many units of Model B would the company need to sell at its breakeven point?
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