Essay
Assume a price per unit equals $100, fixed costs total $50 000, and variable costs are $70 per unit.
a. Find the breakeven point (in both units and dollars).
b. Assume a firm wants to earn a profit of $50 000. Find the new breakeven point.
Correct Answer:
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a. Breakeven point (units) = $50 000/($1...View Answer
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