2.7 The Delaware Company has fixed costs of Birr 100,000 per year and variable costs of Birr10 per unit of output. The Pennsylvania Company has fixed costs of Birrl 20,000 per year and variable costs of Birr 9 per unit of output. The sales price per unit is the same for both companies. Identify a sales price at which both companies will have the same break-even point in terms of number of units sold.

2.7 The Delaware Company has fixed costs of Birr 100,000 per year and variable costs of Birr10 per unit of output. The Pennsylvania Company has fixed costs of Birrl 20,000 per year and variable costs of Birr 9 per unit of output. The sales price per unit is the same for both companies. Identify a sales price at which both companies will have the same break-even point in terms of number of units sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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