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Break Even Analysis in Units and Sales Dollars

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The sale price of one towel each is $16.00, the variable operating cost per towel is $6.00 and the fix operating cost is $40,000

How do I determine the break even point in units?

How do I determine the sales dollar break even level?

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Solution Summary

This solution determines the break even point in units and sales dollars.

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Break-even (units) = Fixed costs/Unit contribution margin
Unit contribution margin = Sales price - Variable costs

Unit ...

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