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how to know that price eg.sp,fixed cost ,sales volume should be increase or decrease to project to be breakeven?
Think about it!
If the fixed costs increase then the project is less worthwhile; if the sales volume increases then the project will be more worthwhile.
So if the NPV is currently positive, fixed costs need to increase to reach breakeven, and sales volume needs to decrease.
Have you watched my free lectures on this?
(Our free lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well.)
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