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Break-even analysis

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Jailer Shoe Company produces shoes that sell for 40 dollars each and have a variable cost of $39.50. Fixed costs are 37,000 dollars. Compute the break-even points in units. Find the sales (in units ) needed to earn a profit of $25,000.

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Solution Summary

The solution explains how to calculate the units for berakeven and for desired profit

Solution Preview

Breakeven units = Fixed cost/Unit contribution margin
Fixed cost = ...

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