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DXZ,IncCurrently Produces One Product Which Sells for $250 Per Unit

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DXZ,Inc.currently produces one product which sells for $250 per unit.The company's fixed costs are $75,000 per year; variable costs are $205 per unit.A salesman has offered to sell the company a new piece of equipment which will increase fixed costs to $100,000.The salesman claims that the company's break-even point will not be altered if the company purchases this equipment.What will be the company's new variable cost per unit?


Definitions:

Consensus

A general agreement among the members of a group or a decision-making process where all participants support or accept the decision made.

Attribution Theory

A psychological theory focused on explaining how individuals determine the causes of behavior and events.

Self-Efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task.

Negative Reinforcers

A stimulus whose removal after a response strengthens the likelihood of that response occurring in the future.

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