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1. Ford Tops Manufactures hats for baseball teams. Ford has fixed costs of $150,000 per quarter and sells each hat for $20. If the variable
1. Ford Tops Manufactures hats for baseball teams. Ford has fixed costs of $150,000 per quarter and sells each hat for $20. If the variable cost per hat is $7, how many hats must Ford sell each quarter to break even? 2. The Cobb Clinic treats walk-in patients for various illnesses. The management accountant has estimated that the clinic has $5,000 in monthly fixed costs in addition to a $15 cost per patient visit. If the charge is $35 per visit, how many visits per month does the clinic need to break even? 3. Oxicon Inc. manufactures several different types of candy for various retail stores. The accounting manager has requested that you determine the sales dollars required to break even for next quarter based on past financial data. Your research tells you that the total variable cost is $300,000, total sales will be $750,000 and fixed costs will be $80,000. What is the breakeven point in sales dollars? 4. ABC audio sells headphones and would like to earn an after-tax profit of $500 every week. Each set of headphones incurs variable cost of $2 and sells for $6. Rent and other fixed costs are $200 per week; thein income tax rate is 25%. How many headphones must ABC sell per week to meet its profit goal
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