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A manufacturing company produces 30,000 units of a product annually. Fixed costs, including rent, utilities, and salaries, total $150,000. Variable costs per unit, including direct
A manufacturing company produces 30,000 units of a product annually. Fixed costs, including rent, utilities, and salaries, total $150,000. Variable costs per unit, including direct materials and labor, amount to $4. The selling price per unit is $10. Calculate the breakeven point in units and dollars, considering fixed and variable costs. Discuss the implications of different cost structures on profitability.
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