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9. The data for a production time-based breakeven problem is in Table 4.6. Calculate the following items: (a) Shutdown breake

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Answer #1

Shutdown Break even point=Avoidable Fixed Cost÷Contribution per unit

=15000/6=2500

Cost Break even point units =Fixed Cost÷(Total sales Revenue-cost to make market) =5000/(13000-12000)=5

Required Return Profit=1200

Required Return After Tax =1200(1-0.20)=1200*0.8=960.

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