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Kid's Corner Sells Lamp Systems for $25

Question 171

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Kid's Corner sells lamp systems for $25.These systems use LEDs to create a light display across walls or ceilings.Kid's Corner pays $13 for the systems.Fixed costs incurred by the company are $18,000.
a.What is the breakeven point in units?
b.If Kid's Corner wishes to earn $10,000 in operating income, how many systems will it have to sell?

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a.$18,000 ÷ ($25 ̶ $...

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