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You operate a small business that has been doing quite well (congratulations!). You anticipate that the local economy is on a down turn and you
You operate a small business that has been doing quite well (congratulations!). You anticipate that the local economy is on a down turn and you want to know at what point your business will become unprofitable. You sell your product for $17.00 each and variable costs include $8.00 of materials and $4.00 of labor. Your fixed costs are $10,000 for space, $2,000 in salaries, and $2,000 for leased equipment. What is your breakeven quantity?
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