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Rob and John Ltd Manufactures a Standard Model of Vacuum

question 14

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Rob and John Ltd manufactures a standard model of vacuum cleaner. The selling price of each cleaner is £155. Variable costs of manufacture are £55.00. During its 20X1 financial year the company expects to incur fixed production costs of £80000 and fixed selling and administration overheads of £36000. How many vacuum cleaners will the company have to sell in order to break-even (to the nearest whole unit) ?


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