Business, 11.03.2020 03:07, markjiron2880

Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.20 and estimates its variable cost to be $0.16 per hanger. Laguna’s total fixed cost is $2,600 per month, which consists primarily of printer depreciation and rent. Suppose that the cost of paper has increased and Laguna’s variable cost per unit increases to $0.180 per hanger.
Required:
1. Calculate its new break-even point assuming this increase is not passed along to customers.

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Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.20 and estimates...