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Jay White sells handmade decorations. He had to purchase specialized equipment for $4000 and buy a retail license for $1000. It cost Jay $125 in time and materials to make each item. He expects to sell each decoration for $150.
a. How many units will he need to sell to breakeven?
b. Jay has been told that the market for his products may not be as large as he originally anticipated. What price would he have to charge to make the Breakeven Point 100 units?
c. This new price represents what percentage change in the price?
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