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At the end of this year, Solarium, LLC is expected to have had sales revenue of $3,500,000 from the sale of 300,000 units. The total of the variable costs were $2,200,000 and the fixed cost was $800,000.
a If the fixed cost and variable cost per unit and price per unit stay the same in the upcoming year, what will the sales quantity have to be to break even in the upcoming year?
b If the fixed cost and variable cost per unit and price per unit stay the same in the upcoming year, what would the price have to be to break even If 500,000 units were sold in the upcoming years?
c An expanded marketing program that will cost an additional $250,000 has been proposed for the upcoming year. How many units would have to be sold to double profits if this marketing program is approved and the contribution per unit is unchanged?

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Jean Keeling
Jean KeelingLv2
29 Sep 2019

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