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break-even sales
For the current year ending January 31, Bell Company expects fixed costs of $178,500 and a unit variable cost of $41.50. For the coming year, a new wage contract will increase the unit variable cost to $45. The selling price of $50 per unit is expected to remain the same.
(a) Compute the break-even sales (units) for the current year. (b) Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed. |
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