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A company calculates that they will break even if they earn $12,500 of revenue. Their fixed costs are $2,500. Suppose their actual revenue is $20,000.
A company calculates that they will break even if they earn $12,500 of revenue. Their fixed costs are $2,500. Suppose their actual revenue is $20,000. How much are their variable costs?
It says the correct answer is C, please show how to find that.
a. $7,500 b. $17,500 c. $16,000 d. $10,000
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