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Question 1: A company has sales of $500,000, variable costs of $300,000, and operating income of $150,000. If the company increased the sales price per unit by 10%, reduced fixed costs by 20%, and left variable cost per unit unchanged, what would be the new breakeven point in sales dollars?
A. $110,000
B. $100,000
C. $88,000
D. $125,000
Prepare a 2-3 page analysis by answering the questions below. Be sure to cite your references using APA format.
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