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In 2012, Mary’s Jelly company has sales of 8,000 units at $20 each, variable cost totaling $40,000, and fixed costs of $60,000. In 2013, the company expects annual insurance cost to increase by $5,000.
Required:
a.Calculate operating income and the breakeven point in units in units for 2012.
b.Calculate the breakeven point in units for 2013.