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    Finance/Financial Management

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    Shock Electronics sells portable heaters for $25 per unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed costs are $96,000.

    a. Compare the break-even points in units.

    b. Fill in the table below (in dollars) to illustrate that the break-even points has been achieved.

    -Fixed Costs:
    -Total variable costs:
    Net Profit (Loss)

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    Solution Preview

    a. Break Even = Fixed costs/Price-Variables cost per unit
    = ...

    Solution Summary

    Prepare an answer to question one at the end of Chapter 5 of the text, Foundations of Financial Management