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How many units would have to be sold to breakeven

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Question - Byrnes Company currently produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $8 per unit. The investment is expected to increase fixed costs by $15,000. Before the new investment is made, how many units would have to be sold to breakeven?

Reference no: EM132204960

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