For the Past Year, Iris Company Had Fixed Costs of $6,708,000

question 53

Essay

For the past year, Iris Company had fixed costs of $6,708,000, a unit variable cost of $444, and a unit selling price of $600. For the coming year, no changes are expected in revenues and costs, except that a new wage contract will increase variable costs by $6 per unit. Determine the break-even sales
(units) for
(a) the past year and
(b) the coming year.

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Definitions:

Music

An art form and cultural activity that involves the creation of sounds organized in time, often expressing emotions through rhythm, melody, and harmony.

Autonomy

The capacity to make an informed, uncoerced decision independently, often associated with freedom from external control or influence.

Make Decisions

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Implement Decisions

The act of putting into action or executing the resolutions or choices made.