2.7 The Delaware Company has fixed costs of Birr 100,000 per year and variable costs of Birr10 per unit of output. The Pennsylvania Company has fixed costs of Birrl 20,000 per year and variable costs of Birr 9 per unit of output. The sales price per unit is the same for both companies. Identify a sales price at which both companies will have the same break-even point in terms of number of units sold.
2.7 The Delaware Company has fixed costs of Birr 100,000 per year and variable costs of Birr10 per unit of output. The Pennsylvania Company has fixed costs of Birrl 20,000 per year and variable costs of Birr 9 per unit of output. The sales price per unit is the same for both companies. Identify a sales price at which both companies will have the same break-even point in terms of number of units sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2.7 The Delaware Company has fixed costs of Birr 100,000 per year and variable costs of
Birr10 per unit of output. The Pennsylvania Company has fixed costs of Birrl 20,000
per year and variable costs of Birr 9 per unit of output. The sales price per unit is the
same for both companies. Identify a sales price at which both companies will have the
same break-even point in terms of number of units sold.
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