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Calculate how many liters of Blue Goo must be sold to break even.

Calculate how many liters of Blue Goo must be sold to break even.

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Management is getting excited about launching into the new market segment. However, they still have their head screwed on a little.. They have asked you to let them know how many liters of Blue Goo must be sold just in order to break even. For this, you have been given the following information: Fixed Cost = $46,763 Variables costs $12.31 per liter Anticipated sales price $41.5 Incentive discount 5.5% %3D Calculate how many liters of Blue Goo must be sold to break even.
Transcribed Image Text:Management is getting excited about launching into the new market segment. However, they still have their head screwed on a little.. They have asked you to let them know how many liters of Blue Goo must be sold just in order to break even. For this, you have been given the following information: Fixed Cost = $46,763 Variables costs $12.31 per liter Anticipated sales price $41.5 Incentive discount 5.5% %3D Calculate how many liters of Blue Goo must be sold to break even.
Expert Solution
Step 1

FIXED COST(FC) = $46763

VARIABLE COST(VC) = $12.31

ANTICIPATED SALES PRICE (SP)= $41.5

DISCOUNT= 5.5% OF 41.5 = $2.28

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