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Question #1: The volume of books that One.com, an online book retailer, needed to sell in order to break-even in

July 2012 was 10,000 units. Fixed expenses per month (salaries and warehousing) are $60,000. The selling price per book is $10. In August 2012, One.com decides to acquire signed copies of books by bestselling authors. Because of this, variable costs in August are expected to increase by 25% over the previous month. What is the breakeven volume for August 2012, assuming the price per book does not change? Please present your workings clearly. (3)

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