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    Finding Breakeven Point (BEP)

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    A company 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?

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    Let x be breakeven points in units.
    Total cost at this point =Fixed costs +variable ...

    Solution Summary

    Solution describes the methodology to determine breakeven point of a company.