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60. A small business owner is contemplating the addition of another product line. Capacity increases and equipment will result in an increase in...

This question was created from Chapter 05 Test Bank - Capacity Planning https://www.coursehero.com/file/16409062/Chapter-05-Test-Bank-Capacity-Planning/

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GO . A small business owner is contemplating the addition of another product line . Capacity
increases and equipment will result in an increase in annual fixed costs of $50 000 Variable
costs will be $25 per unit , A ) What unit selling price must the owner obtain to break - even on
a volume of 2 500 units a year ?B ) Because of market conditions , the owner feels a revenue of
$47 is preferred to the value determined in part a What volume of output will be required to
achieve a profit of $16 000 using this revenue ?

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Answer A) Unit selling price to obtain break even point... View the full answer

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