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Problem 2 (Textbook Reference: P5-3) - Determine break-even point under varying assumptions The management of Bootleg Company wants to know the break-even point for its
Problem 2 (Textbook Reference: P5-3) - Determine break-even point under varying assumptions The management of Bootleg Company wants to know the break-even point for its new line of hiking boots under each of the following independent assumptions. The selling price is $50 per pair of boots unless otherwise stated. (Each pair of boots is one unit) Required: Compute the break-even point in units and sales dollars for each of the four independent cases a. Fixed costs are $300,000; variable cost is $30 per unit. Break-even units Break-even sales dollars b. Fixed costs are $300,000; variable cost is $20 per unit. Break-even units Break-even sales dollars Fixed costs are $250,000; variable cost is $20 per unit. c. Break-even units Break-even sales dollars d. Fixed costs are $250,000; selling price is $40; and variable cost is $30 per unit Break-even units Break-even sales dollars
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