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Ray Tool company has os company has fixed costs 9 232,400, sells its units for $62, and has variable costs of $34 per unit. a
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Answer #1

a) Break even =Fixed Cost/(Sales-Variable Cost) =232400/(62-34) =8300

b) Break even =Fixed Cost/(Sales-Variable Cost) =180000/(62-37) =7200

c) At very high volume Plan 2 profitability will decrease because variable cost goes up at high volume.

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