Determining the break-even level of revenues


A manufacturer contemplates a change in technology that would reduce fixed costs from $800,000 to $600,000, and reduce depreciation expense from $125,000 to $100,000. However, the ratio of variable costs to sales will increase from 68% to 80%. What will happen to break-even level of revenues?

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Finance Basics: Determining the break-even level of revenues
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