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majarm majarm
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6 years ago
The gas division of Power-U-Up plans to introduce a new gas delivery system based on the following accounting information.

   Fixed costs per period are $4 236; variable cost per unit is $168;
   selling price per unit is $211; and capacity per period is 450 units.

a) Draw a detailed break-even chart
b) Compute the break-even point
   (i) in units;
   (ii) as a percent of capacity;
   (iii) in dollars.
c) Determine the break-even point as a percent of capacity
   (i) if fixed costs are reduced to $3 788;
   (ii) if fixed costs are increases to $5 577 and variable costs are reduced to 75% of the selling price;
   (iii) if the selling price is reduced to $191.
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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SupremeSupreme
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6 years ago
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