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The XYZ Company is an all-equity-financed firm. It earns monthly, before taxes (EBIT), $30,000 on sales of $900,000. The company sells per unit of its
The XYZ Company is an all-equity-financed firm. It earns monthly, before taxes (EBIT), $30,000 on sales of $900,000. The company sells per unit of its product for $180, of which $140 is variable cost. a. What is the company's monthly fixed operating cost? b. What is the monthly operating break-even point in units? c. What is the monthly operating break-even point in dollars?
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