Ingrid is planning to expand her business by taking on a new product that costs $7.56. In order to market this new product, $1307.00 must be spent on advertising. The suggested retail price for the product is $11.31.(a)If a price of $14.49 is chosen, how many units does she need to sell to break even?(b)If advertising is increased to $1674.00, and the price is kept at$11.31, how many units does she need to sell to break even?

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Answered: Ingrid is planning to expand her…

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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Ingrid is planning to expand her business by taking on a new product that costs $7.56. In order to market this new product, $1307.00 must be spent on advertising. The suggested retail price for the product is $11.31.

(a)	If a price of $14.49 is chosen, how many units does she need to sell to break even?
(b)	If advertising is increased to $1674.00, and the price is kept at $11.31, how many units does she need to sell to break even?

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