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1. Identify the sales and cost lines (you can mention which one starts from Zero, which one from $40,000) 2. What is the break-even point
1. Identify the sales and cost lines (you can mention which one starts from Zero, which one from $40,000)
2. What is the break-even point in units?
3. What is the company's fixed costs?
4. What is the company's variable cost per unit?
5. What is the company's profit at sales of 80,000 units?
6. Would an increase in variable cost per unit cause a company's break-even point to increase or decrease? Why?
Cost-Volume-Profit Chart Revenues and Costs $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 10 20 30 40 50 60 70 80 90 Sales in Units (000's) (Step by Step Solution
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