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What volume of sales is required to reach breakeven for the following business: The variable cost of producing one unit of the product is $5,
What volume of sales is required to reach breakeven for the following business: The variable cost of producing one unit of the product is $5, the fixed costs of plant and labor are $500,000, and the selling price of a single product is $50. It is not always easy to classify a cost as fixed or variable. What happens to the breakeven calculated above if some of the fixed costs are reclassified as variable costs? What happens if the reverse is the case (i.e., some of the variable costs are reclassified as fixed costs)?
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