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You need to show the work in order to receive full credit Formula: BE point = Fixed Cost divided by (price minus unit variable cost)

You need to show the work in order to receive full credit

Formula:

BE point = Fixed Cost divided by (price minus unit variable cost)

Given

Quantity Sold = 250 units

Fixed Cost = $1,500

Unit variable cost = $9 per unit

Unit Price = $12

1) Calculate for break event point in unit.

2) Is the company making profit or loss?

3) Based on the answer from 2), how much?

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