The new break-even point in units is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Waterway Industries sells radios for $50 per unit. The fixed costs are $625000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $105000 and variable costs will be 50% of the selling price. The new break-even point in units is:
25000
29200
27150
31250
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