a)
To determine: The crossover point in units.
Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.
b)
To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.
Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.
c)
To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.
Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.
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