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Sullivan's T-Shirt Store Sells T-Shirt with a Sales Price of $25

Question 109

Essay

Sullivan's T-Shirt Store sells t-shirt with a sales price of $25 each. Each t-shirt costs the company $15 to produce, and the store incurs a total of $100,000 in fixed costs each year.
What is the yearly breakeven point in units?

Correct Answer:

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Breakeven units = Fixed costs ...

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