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The break-even point was determined to be 3,000 units/month.Next month begins an increased lease payment for the production facility.The overall effect will be to increase the fixed costs by 10%.How will the break-even point be affected?
Work in Process
Goods partially completed during the manufacturing process, not yet ready for sale.
Raw Materials
Fundamental substances that are transformed through manufacturing processes into a final product, essential components in production.
Variable Manufacturing Overhead
Costs in the manufacturing process that fluctuate with production volume, such as utilities or materials used only in production.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company.
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