Solved: A new employee suggests that redex sponsor a company, Cost Accounting

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A new employee suggests that redex sponsor a company

The following monthly data are available for RedEx, which produces only one product that it sells for $84 each.

Its unit variable costs are $28 and its total fixed expenses are $64,960. Sales during April totaled 1,600 units.

(a) How much is the breakeven point in sales dollars for RedEx?

(b) How many units must RedEx sell in order to earn a profit of $24,640?

(c) A new employee suggests that RedEx sponsor a company softball team as a form of advertising. The cost to sponsor the team is $1,792.

How many more units must be sold to cover this cost?

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Cost Accounting: A new employee suggests that redex sponsor a company

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Cost Accounting: A new employee suggests that redex sponsor a company

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