Seeley Company manufactures a product that sells for $230 per unit. It incurs fixed costs of $910,000.
Question:
Required
a. Determine the sales volume in units and dollars required to break even.
b. Calculate the break-even point assuming fixed costs increase to $1,190,000.
c. Explain how a fixed cost structure affects risk and the break-even point.
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N Number of units to breakeven Sales Variable cost Fixed cost Profit Sales price x N Variable cost ...View the full answer
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