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The Terminal Tobacco Company estimates that each case of cigars they produce can be sold for $65. Fixed costs of production are estimated at $35,000,
The Terminal Tobacco Company estimates that each case of cigars they produce can be sold for $65. Fixed costs of production are estimated at $35,000, while variable costs are estimated at $15 per case. On the basis of this information, answer the following questions:
a. What is the firms break-even point in units?
b. What is the firms break-even point in sales dollars?
c. How much profit will the company earn from the sale of 1,500 cases?
d. How many cases could Terminal have to sell to earn $180,000 profit?
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