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Assume Fixed Costs Equal $480,000

Question 30

Essay

Assume fixed costs equal $480,000.The selling price per unit is $10,and the variable cost per unit of $8 produces a $2 per unit contribution to fixed costs.Find the breakeven point in terms of both units and in dollars.

Correct Answer:

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$480,000/$2 = 240,000 =breakev...

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