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Positive Operating Income

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A company estimates that its fixed costs are $500,000, and its variable costs are $3.00 per unit sold. Each unit produced sells for $4.00. What is the company's breakeven point? In other words, how many units must it sell before its operating income becomes positive?

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This solution how a company can make its operating income positive.

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A company estimates that its fixed costs are $500,000, and its variable costs are $3.00 per unit sold. Each unit produced sells for $4.00. What is the company's breakeven point?

Company's BEP= Fixed ...

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