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What is the new level of sales necessary to break even

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Reference no: EM132965541

The manufacturer of a product that has a variable cost of $2.50 per unit and a total fixed cost of $125,000 wants to determine the level of output necessary to avoid losses.

1) What level of sales is necessary to break even if the product is sold for $4.25?

2) If fixed costs rise to $175,000 what is the new level of sales necessary to break even?

Reference no: EM132965541

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