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Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics: |
| AU | NZ | |||||
| Selling price per unit | $ | 420 | $ | 420 | ||
| Variable cost per unit | $ | 120 | $ | 210 | ||
| Expected units sold per year | 40,000 | 60,000 | ||||
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The total fixed costs per year for the company are $11,562,000
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| (c) |
If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break even volume for Sundial, Inc.? |