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Crystal s Ice Cream Company has fixed costs of $ 2 , 0 0 0 and the cost of labor and variable costs of $

Crystals Ice Cream Company has fixed costs of $2,000 and the cost of labor and variable costs of $0.50. Assume that Crystals Ice Cream Company can sell 8,000 units at $1 without lowering its price. For 6,000 units of output, Crystals Ice Cream Company has $2,000 in total fixed costs and $3,000 in total variable costs (6,000 units \times $0.50), or $5,000 in total costs. This example of break-even analysis demonstrates which of the following?
Crystals Ice Cream Company has fixed costs of $2,000 and the cost of labor and variable costs of $0.50. Assume that Crystals Ice Cream Company can sell 8,000 units at $1 without lowering its price. For 6,000 units of output, Crystals Ice Cream Company has $2,000 in total fixed costs and $3,000 in total variable costs (6,000 units \times $0.50), or $5,000 in total costs. This example of break-even analysis demonstrates which of the following?
Establishment of two separate charges to consume a single good or service
Cost of buying the product from the producer, plus amounts for profit and for expenses
Sales volume must be reached before a company breaks even
Level of cost that does not change as output is increased or decreased

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