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Breakeven point for Bevil Industries

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Bevil Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's contribution margin ratio is 40% and its current breakeven point is $500,000 in sales revenue. If Bevil Industries' fixed expenses increase by $40,000 due to the equipment, what will its new breakeven point be?

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The expert examines a break-even point for Bevil Industries. The fixed expenses are given.

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Breakeven point
Bevil Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality ...

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