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Breakeven Analysis of Fixed Cost Investment BEV FC = Fixed cost investment/Unit Margin Calculate BEV FC for a pair of shoes: Shoes sales price =

Breakeven Analysis of Fixed Cost Investment

  • BEV FC = Fixed cost investment/Unit Margin

  • Calculate BEV FC for a pair of shoes:

    • Shoes sales price = $120;

    • Variable cost = $50;

    • Fixed cost = $40million

  • How many pair of shoes must you sell in order to break even?

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