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Larsen Films' Is Analyzing Its Cost Structure

Question 3

Multiple Choice

Larsen Films' is analyzing its cost structure.Its fixed operating costs are $470,000, its variable costs of $2.80 per unit produced, and its products sell for $4.00 per unit.What is the company's breakeven point, i.e., at what unit sales volume would income equal costs?


A) 391,667
B) 411,250
C) 431,813
D) 453,403
E) 476,073

Correct Answer:

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