Iale is 800000 variable cost 480000 fixed cost

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If sale is $ 8,00,000 , Variable cost = $ 4,80,000, Fixed cost = $ 1,60,000.The global industry is thinking of expanding the industry capacity. The increase in fixed costs due to industry expansion will be $ 80,000. The estimation was that due to new industry the increase in production will be $ 4,80,000 in sale value but the variable cost doesn't change remains at 60% of sale. Find Break Even Point before expansion and after expansion.

Reference no: EM13586332

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