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Acme Company plans to produce and sell a new product for $14…
Acme Cоmpаny plаns tо prоduce аnd sell a new product for $140 per unit. Acme has enough existing capacity to produce 4,800 units per year at a variable cost of $80 per unit and total fixed costs of $330,000 per year. If necessary, Acme can expand its capacity by renting additional space. The annual rent expense would be $28,000 and the variable cost of the units produced in the rented space would be $90 per unit. What is the total number of units that Acme needs to sell to break-even on the new product?
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