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Matthews Beach Towel Company Sells Custom Beach Towels with a Sales

Question 111

Essay

Matthews Beach Towel Company sells custom beach towels with a sales price of $20 each. Each beach towel costs the company $15 to produce, and the company incurs a total of $150,000 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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