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A Division of a Corporation Produces "Personal Income Tax" Diaries

Question 227

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A division of a corporation produces "Personal Income Tax" diaries. Each diary sells for $4. The monthly fixed costs incurred by the division are $6,000, and the variable cost of producing each diary is $2.
Find the break-even point for the division.
break-even production __________ units;
break-even revenue $ __________.
What should be the level of sales in order for the division to realize a 15% profit over the cost of making the diaries?
__________ units

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