What would become the new breakeven point in unit sales

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Reference no: EM132709658

Allwill Products distributes a single product, a decorative plate whose selling price is $10 and whose variable cost is $6 per unit. The company's monthly fixed expense is $7,500.

Required:

Problem 1. Calculate the company's break-even point in unit sales.

Problem 2. Calculate the company's break-even point in dollar sales.

Problem 3. If the company's fixed expenses increase by $500, what would become the new breakeven point in unit sales? In dollar sales?

Reference no: EM132709658

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