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Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $6,700,000, but
Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $6,700,000, but 20 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $11. How many units does the firm need to sell to reach the cash break-even point?
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