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I'm struggling with this question The company PeasItems manufactures some products with an average sales price of 25/unit, with fixed annual costs of 11I 0,000.
I'm struggling with this question
The company PeasItems manufactures some products with an average sales price of 25/unit, with fixed annual costs of 11I 0,000. The average unit variable costs are 5.
a) At what volume of production will the threshold of profitability be reached?
b) Assuming that annual sales are estimated at 20,000 units, being the distribution evenly over a year, on what date will the break-even point be reached?
c) What would be the sales value or turnover corresponding to the threshold of profitability?
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