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Question
Martin Corporation currently sells 180,000 units per year at a price of $7.00 per unit; its variable cost is $4.20 per unit; and fixed operating costs are $400,000. Martin is considering expanding into two additional states which would increase its fixed costs to $650,000 and would increase its variable unit cost to an average of $4.48 per unit. If Martin expands it expects to sell 270,000 units at $7.00 per unit. By how much will Martin's operating breakeven sales dollar level change?
a. $183,333
b. $456,500
c. $805,556
d. $910,667
e. $1,200,000
Answer
This answer is hidden. It contains 151 characters.
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