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Estimates show that the variable cost of manufacturing a new product will be USS 35...

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Accounting

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Estimates show that the variable cost of manufacturing a new product will be USS 35 per unit. Based on the market research, the selling price of the product will be US $120 per unit. Fixed costs are estimated to be US$ 2800 per period and the production capacity per period is 100 units. Based on the scenario, perform breakeven analysis showing, a) an algebraic statement of the (i) the revenue function/equation. [2 marks] (ii) the cost function/equation. [2 marks] b) computation of the break-even point (i) in units [ 3 marks] (ii) in sales in dollar terms [3 marks] c) a detailed breakeven chart [ 7 marks]

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