A company has the following production costs. Calculate the Break-even Point in units. Costs: Fixed Costs: $50,000
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Question:
A company has the following production costs. Calculate the Break-even Point in units.
Costs:
- Fixed Costs: $50,000
- Variable Cost per Unit: $20
- Selling Price per Unit: $50
Requirements:
- Calculate the Contribution Margin per unit.
- Calculate the Break-even Point in units.
- Analyze the impact on the Break-even Point if the Fixed Costs increase to $60,000.
- Calculate the Break-even Point in sales dollars.
Expert Answer:
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