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Answer in Accounting for Jay #98187

Author:
March 18th, 2023

FC + VC – PQ = 0, where FC – fixed costs, VC – variable costs, PQ – Volume of sales

15000 + 5000*4 – 5000*x = 0, x is break-even price

x = $7.

If sell will be increased on 50%, then

15000 + (5000+50%)*4 – (5000+50%)*x = 0

x = $6

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