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Break-even point

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Money Corporation produces class rings. The rings sell for $75 each and cost $35 each to produce. Money's fixed costs are $50,000.

a) What is Money's break-even point in rings?

b) How much profit or loss will Money have if it sells 8,000 rings?

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Solution Summary

Break even point is calculated. Profit/loss at a sales level is calculated.

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Money Corporation produces class rings. The rings sell for $75 each and cost $35 each to produce. Money's fixed costs are $50,000.

a) What is Money's break-even point in rings?

b) How much profit or loss will Money have if it sells 8,000 rings?

a) What is Money's ...

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