Solution-How would the break-even in units and dollars

How would the break-even in units and dollars change

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Question 1: Kyle's Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase her fixed costs by $59. What would happen if she purchased the new oven to realize the variable cost savings of $0.10 per cookie, and what would happen if she raised her price by just $0.20? She feels confident that such a small price increase will decrease the sales by only 25 units and may help her offset the increase in fixed costs. Given the following current prices how would the break-even in units and dollars change if she doesn't increase the selling price and if she does increase the selling price? Complete the monthly contribution margin income statement foreach of these cases.

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How would the break-even in units and dollars change

Reference no: EM132608397

Reference no: EM132608397

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