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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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