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Breakeven Point

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A company's fixed operating costs are 500,000, its variable costs are 3.00 per unit, and the product's sales price is 4.00. What is the company's breakeven point ; that is, at what unit sales volume would its income equal its costs? Please show calculations.

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Solution Summary

The solution explains how to calculate the breakeven point.

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At breakeven, total revenue = total cost
Let x be the breakeven volume. The selling price per unit is $4. The total revenue will be 4x
Total cost = fixed ...

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