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What will be the new monthly break even point in units

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Reference no: EM132739082

Always Ready Company sells a single product. The unit selling price is $275, and variable costs are 60% of this selling price. Fixed costs are currently $55,000 per month.

Problem (a) Calculate the monthly break even point in units. ____________ Units.

Problem (b) Always Ready is considering the acquisition of new robotic equipment. Depreciation on the new robots will increase monthly fixed costs by $6,000, but reduce variable costs to 50% of the current selling price. If Always Ready acquires the robots what will be the new monthly break even point in units? ________________________ Units.

A fixed cost may include all of the following except:
A) Rent for the warehouse.
B) Annual salary of the CEO.
C) Depreciation.
D) Sales commission expense

Reference no: EM132739082

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