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Marketing question?

Chambers Company has collected estimates for conducting a breakeven analysis for a new product. Variable costs are $7 per unit. The additional plant will cost $48,000.

The new product will be charged $18,000 a year for its share of general overhead.

Advertising expenditures will be $80,000 and $50,000 will be spent on distribution.

1. If the product sells for $12, what is the breakeven point in units?

2. What is the breakeven point in dollar sales volume?

Update:

PSF11, I understand that this question is not necessarily a marketing question but it is for my marketing class.

Thanks though.

1 Answer

Relevance
  • Anonymous
    1 decade ago
    Favorite Answer

    This is a finance or accounting question-- not marketing.

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