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Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium
Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium Beds fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price per unit $3,150.00 Per-unit variable costs: Invoice cost 2,368.80 Sales commissions 311.20 Total per-unit variable costs $2,680.00 Total annual fixed costs: Advertising $ 236,300 Rent 178,300 Salaries 386,300 Total annual fixed costs $ 800,900 The annual breakeven point in units is: 1 0 1,705 units. 0 2.105 units. 0 3,505 units. 0 1,405 units
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