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Hi Sir,
I was trying to workout the below question but I did not understand how they have arrived in contribution per unit to find out the Breakeven point.
Question : A company has a fixed cost of $1.3 million, variable costs are 55% of sales up to a sales level of $1.5 million, but a higher volumes of production and sales, the variable cost for incremental production units falls to 52% of sales.
What is the breakeven point in sales revenue, to the nearest 1000?
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