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The equation method begins by expressing the income statement as follows. At the break-even point, profit is equal to zero. Sales Total variable cost Total
The equation method begins by expressing the income statement as follows. At the break-even point, profit is equal to zero. Sales Total variable cost Total fixed cost = Profit $36N - $24N - $60,000 = 0$12N = $60,000N = $60,000/$12 = 5,000 Units.
If $36.00 dollars is the unit cost and $24.00 is the Variable cost per unit $60,000 is the fixed cost
And the example shows how to break even which means no profit and not lost. Please try to find out how many units must be sold to reach a $75,000 dollar profit. Explain it all very detailed.
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