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Break-even Analysis for a Widget Company

Calculate the break-even for a Widget company given the following information:

Sales Price Variable Cost per unit Fixed Costs
Widgets $800 $550 $77,000

Problem 2
Based upon the information needed in problem 1, how many widgets must be produced to earn a profit of $50,000?

Solution Preview

Answer 1: Use the following formula:
800Q = 77,000 + 550Q
Now we solve for Q
800Q - 550 Q = ...

Solution Summary

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