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The price of a product is $5.00 a unit. A business can produce this product with variable costs of $2.00 per unit and total fixed
The price of a product is $5.00 a unit. A business can produce this product with variable costs of $2.00 per unit and total fixed costs of $300. Answer the following questions and SHOW ALL YOUR CALCULATIONS TO GET CREDIT.
a. What is the breakeven level of output?
b. What is the breakeven level of output if fixed costs increase to $400 and variable costs decrease to $1.80 per unit?
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