Pedro sells port wine for $36 per bottle. His fixed costs are $1,430. Variable costs are $11 per bottle. If variable costs increase by $2 per bottle due to a switch to environmentally friendly recycled glass bottles, what is the new breakeven volume in units if price remains the same?

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20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Pedro sells port wine for $36 per bottle. His fixed costs are $1,430. Variable costs are $11 per bottle. If variable costs increase by $2 per bottle due to a switch to environmentally friendly recycled glass bottles, what is the new breakeven volume in units if price remains the same?
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