The gas division of Power-U-Up plans to introduce a new gas delivery system based on...

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Accounting

The gas division of Power-U-Up plans to introduce a new gas delivery system based on the following accounting information.

Fixed costs per period are $4 236; variable cost per unit is $168; selling price per unit is $211; and capacity per period is 450 units.

Determine the break-even point as a percent of capacity if fixed costs are increases to $5 577 and variable costs are reduced to 75% of the selling price.

23.65%

24.24%

27.21%

21.24%

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