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Bonita Industries sells a product for $50 per unit. The fixed costs are $940000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $130000 and variable costs will be 50% of the selling price. The new break-even point in units is:

Bonita Industries sells a product for $50 per unit. The fixed costs are $940000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $130000 and variable costs will be 50% of the selling price. The new break-even point in units is:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bonita Industries sells a product for $50 per unit. The fixed costs are $940000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $130000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Transcribed Image Text:Bonita Industries sells a product for $50 per unit. The fixed costs are $940000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $130000 and variable costs will be 50% of the selling price. The new break-even point in units is:
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