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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. $2,950.00 Sales price per unit Per-unit variable costs: Invoice cost Sales commissions 2,200.00 220.00 $2,420.00 Total per-unit variable costs Total annual fixed costs: Advertising Rent Salaries $ 230, 200 176,300 385,200 $ 791,700 Total annual fixed costs The annual breakeven point in dollars is: (Do not round intermediate calculations.) $3,906,633. $4,106,633. () $4,406,633. $3,706,633. $4,206,633
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