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Sigma Manufacturing Co. Scenario: Break-Even Analysis Data: Sales Price per Unit: $20 Variable Cost per Unit: $10 Fixed Costs: $50,000 Requirements: Calculate the break-even point

Sigma Manufacturing Co.

Scenario: Break-Even Analysis

Data:

  • Sales Price per Unit: $20
  • Variable Cost per Unit: $10
  • Fixed Costs: $50,000

Requirements:

  1. Calculate the break-even point in units and dollars.
  2. Determine the margin of safety in units and dollars.
  3. Discuss the implications of the break-even analysis for pricing and cost management.

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