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    Break Even Quantity and assets/liabilities

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    7. If assets are $7,000 and capital is $2,000, what are liabilities?
    8. If capital is $17,000 and liabilities are $8,000, what are assets?
    9. You are given the following information for Firm XYZ:
    Fixed operating costs = $500,00
    Variable operating costs per unit = $40/unit
    Sales price per unit = $50/unit
    Calculate the break-even point in units for:

    10. A firm has fixed expenses of $3,500 per month and will sell its product for $30.00. Variable expenses are $28.00 per unit.
    a. How many units must be sold for the firm to break even?

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    Solution Preview

    Assets = Liabilities + Capital

    7. Liabilities = $7000 - $2000 = ...

    Solution Summary

    A break even quantity for assets and liabilities are analyzed. The amount of units required to sell for the firm to break even is given.