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My company manufactures high end gears and sells these gears for $8.50 each. I have a high level of fixed operating costs to help me
My company manufactures high end gears and sells these gears for $8.50 each. I have a high level of fixed operating costs to help me manufacture my gears. On an annual basis, my fixed costs are $4,000,000. My variable costs per unit are $1.50. Based on this information, what is my breakeven quantity (how many gears do I need to manufacture to start making a profit)?
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