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Explaination 1

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Accounting
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To determine the break-even point, we must divide the fixed costs by the weighted‐average unit contribution margin of $16 and $14 (40-24=$16, 38-24=$14). If we make no changes to the store ($270,000/$16) = 16,875 units. With the proposed changes, we will have ($294,000/$14) = 21,000 units. The bre ...
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