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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 e-bikes. They have fixed costs for renting their factory of $8,000 a month, a fixed cost for utilities of $4,000 a month, and fixed costs for employee benefits of $4000. The selling price per e-bike is $2,000. The variable cost for materials per e-bike is $400 and the variable labor costs are $200 per bike. Perform a break-even analysis to tell me how many e-bikes (units) per month does the company have to produce and sell to reach the break-even point? What is the break-even point in sales dollars? Also, write a paragraph on when this type of analysis is applicable with examples.

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