Chambers company has just gathered estimates for conducting


Chambers Company has just gathered estimates for conducting a break-even analysis for a new product. Variable costs are $7 a unit. The additional plant will cost $48000. The new product will be charged $18000 a year for its share of general overhead. Advertising expenditures will be $80000, and $55000 will be spent on distribution. If the product sells for $12, what is the break-even point in units? What is the break-even point in dollar sales volume?

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Operation Management: Chambers company has just gathered estimates for conducting
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