A company has fixed costs of 50,000 and produces one product with a selling price of 12.00

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A company has fixed costs of £50,000 and produces one product with a selling price of £12.00 each and variable costs of £7.00 per unit. The maximum factory capacity is 20,000 units and it anticipates selling 15,000 units . Construct a break-even chart showing the break-even point and the margin of safety .

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