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What would the new operating income or loss be

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1. Given the budgeted selling price and cost data, how many units would Americas have to sell to break even? (Hint: Be sure to consider selling and administrative expenses.)

2. Market research indicates that if Americas were to drop its selling price to $3.70 per unit, it could sell 100,000 units. Would you recommend the drop in price? What would the new operating income or loss be?

Reference no: EM13890028

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