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Environmentally Friendly Bike Company produces e - bikes. They have fixed costs for renting their factory of $ 8 , 0 0 0 a month,
Environmentally Friendly Bike Company produces ebikes. They have fixed costs for renting their factory of $ a month, a fixed cost for utilities of $ a month, and fixed costs for employee benefits of $ The selling price per ebike is $ The variable cost for materials per ebike is $ and the variable labor costs are $ per bike. Perform a breakeven analysis to tell me how many ebikes units per month does the company have to produce and sell to reach the breakeven point? What is the breakeven point in sales dollars? Also, write a paragraph on when this type of analysis is applicable with examples.
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