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Cake Shop bakes and sells cakes. Cake Shop has annual fixed costs of $920,000 and a variable cost per cake of $8.50. Each cake sells
Cake Shop bakes and sells cakes. Cake Shop has annual fixed costs of $920,000 and a variable cost per cake of $8.50. Each cake sells for $17.50 each. The firm expects to sell 550,000 cakes annually. What is the break-even point in sales dollars?
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