Salty Chip Corp. sells 190,000 bags of chips at a sales price of $3.07 and...
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Salty Chip Corp. sells 190,000 bags of chips at a sales price of $3.07 and variable cost of $1.65 per bag. Their fixed costs typically run $80,000. If they run a new ad campaign costing $13,000 each year, they expect to increase sales by 20%.
What is the expected new breakeven level (in bags) after the ad campaign is implemented?
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