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QUESTION
With the help of your CFO, you have put together the following preliminary budget figures based on last year's numbers for a planned production and
In year 2, the CEO plans to add $300,000/yr. expense in added administrative salaried headcount. Ignoring utility costs altogether, how many additional units must be sold just to pay for this added expense?
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Fixed costBuilding depreciationMachine operatorsFixed expenses Variable costManagement stafDirect materialVariable expenses Semi-variable costUtility expenses 1. A fixed cost does not vary...