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SanFrancisco Inc. manufactures computer supplies. San Francisco Inc. has variable expenses of $1.25 (for software) and $0.75 (for hardware) per unit. Assume that total fixed
SanFrancisco Inc. manufactures computer supplies. San Francisco Inc. has variable expenses of $1.25 (for software) and $0.75 (for hardware) per unit. Assume that total fixed expenses are 50,000. The devices are sold for $6 each.
- In the space below, draw a blank/generic Break Even Chart/Graph.
- draw the fixed cost line.
- Draw the Variable cost line
- Draw the Total Cost Line
- Draw the Total Revenue line on the chart (HINT: Make sure the total cost and total revenue lines intersect). HINT: Dont worry about the scale or numbers on the axis, just draw a generic graph.
- Now using the information provided in the question, calculate the Break Even Point in units.
- Given your BEP in units (from Part B), calculate the BEP in dollars.
- Label both the quantity and the $ amount calculated in parts b and c on the blank/generic BEP chart you sketched for part A.
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