"Therapeutic Systems": Compute the break-even point
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Therapeutic Systems sells its products for $8 per unit. It has the following costs:
Rent $120,000
Factory labor $1.50 per unit
Executive salaries $112,000
Raw material $.70 per unit
Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $6, compute the break-even point.
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Fixed cost:
Rent $120,000
+ Executive salaries $112,000
Total Fixed cost = ...
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