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Neverlate Is World Famous for Its Precision Pocket Watches

Question 152

Essay

Neverlate is world famous for its precision pocket watches. The company has estimated that variable manufacturing costs and variable selling costs per watch will be $72 and $43, respectively, for 20xx. Also during 20xx, the company is expecting fixed manufacturing costs to total $291,600 and fixed general and administrative expenses to amount to $253,175. The anticipated selling price of each watch is $500. Compute (a) the breakeven point in sales units and (b) the breakeven point in sales dollars.

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