Retail Store The Dollar Retailer sells all its products for $1 per unit in...

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Accounting

Retail Store
The Dollar Retailer sells all its products for $1 per unit in its New Orleans store. The retailer pays $.75 per unit (on average) to a supplier. Fixed costs are $5,000 per month which consists of: $1,400 rental; $600 utilities; $3,000 salaries of store employees. Answer each question independently.
a. Calculate the break even point (in units) per month.
[20,000 units]
b. If the rent is doubled, what is the break-even point (in units)?
[25,600 units]
c. If the supplier raises its price to $.80 per unit, what is the break-even point (in units)?
[25,000 units]
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