Company produce products and can produce at most 1, 005 units per month. Its current monthly production variables are a fixed cost of $55,000, a constant average variable cost of $2, 150 per unit, and a selling price of $2, 400 per unit By how much must the fixed cost change if the break-even rate is to be 320 units per month?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
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Company produce products and can produce at most 1, 005 units per month. Its current monthly production variables are a fixed cost of $55,000, a constant average variable cost of $2, 150 per unit, and a selling price of $2, 400 per unit

By how much must the fixed cost change if the break-even rate is to be 320 units per month?

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