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Assume that TALA management was provided by the following information regarding the production and sales of Bluetooth Keyboards for tablet computer:
Cost Schedule Variable
Cost Direct labor per keyboard $8.0
Direct materials $4.0
Variable overhead $3.0
Fixed costs Manufacturing $ 25 000
Selling 40 000
Administrative 70 000
Selling price per keyboard $25.0
Sales, 2020 (20 000 Keyboards) $500 000
Assume that management set the sales target for the year 2018 at level $550 000 (22000 keyboards). Amazon's management believes that to attain the sales target in 2018, the company must incur an additional selling expenses of $10 000 for advertising in 2018, with over cost remaining constant.
problem 1: What will be the break-even-point in sales dollars for 2018 if the company spends the additional $ 10 000?
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