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samualson samualson
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5 years ago
DXZ, Inc. currently produces one product which sells for $250 per unit. The company's fixed costs are $75,000 per year; variable costs are $205 per unit. A salesman has offered to sell the company a new piece of equipment which will increase fixed costs to $100,000. The salesman claims that the company's break-even point will not be altered if the company purchases this equipment. What will be the company's new variable cost per unit?
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Foundations of Finance

Foundations of Finance


Edition: 9th
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Marc18Marc18
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samualson Author
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#2
5 years ago
Makes more sense now, have a good weekend!
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