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Plant Bottling Needs to Reduce the Selling Price of Its

question 35

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Plant Bottling needs to reduce the selling price of its acrylic water bottles in order to be competitive.Currently, it has fixed costs of $110,000 and variable costs per unit of $4.10.If Plant Bottling can sell 40,000 units, what price should it charge in order to break-even?

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Definitions:

Non-controlling Interest

A minority ownership in a subsidiary that is not large enough to exert control over the company, reflected within the equity section of the consolidated financial statements.

Consolidated Equity

The total amount of owners' equity represented in a consolidated financial statement, which reflects the combine equity of a parent company and its subsidiaries.

Non-controlling Interest

The portion of equity in a subsidiary not owned by the parent company, also known as minority interest.

Profit After Tax

The net income of a company after all taxes have been deducted from revenues.

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