The following monthly information is available about a companys only product: 1....
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Accounting
The following monthly information is available about a companys only product:
Compute the breakeven point in units and sales dollars.
Management is contemplating the using cheaper direct materials in the product. This change would reduce variable costs by $ per unit. The companys sales manager predicts that this would reduce the overall quality of the product and thus would result in a decline in sales to a level of units per month. Should this change be made? Answer in brief sentences and show your work to support your answer.
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