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Factory, a small manufacturer of high quality lags, etc.) has fixed costs of $4,000 per month each unit produced is $2.50. Assume that the er month at a selling price of $4.50 per unit. A does the company break even? Show your c

Factory, a small manufacturer of high quality lags, etc.) has fixed costs of $4,000 per month each unit produced is $2.50. Assume that the er month at a selling price of $4.50 per unit. A does the company break even? Show your c

FINANCIAL ACCOUNTING
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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4 this question is for Marketing course as i didn't see any marketing option in course type so there i mentioned economics so please this question is for Marketing. thanks
Brackendale Chocolate Factory, a small manufacturer of high quality souvenir chocolates (Canadian flags, etc.) has fixed costs of $4,000 per month. The cost of labour and materials for each unit produced is $2.50. Assume that the company can sell up to 10,000 units per month at a selling price of $4.50 per unit. At what level of monthly sales (in units) does the company break even? Show your calculations.
Transcribed Image Text:Brackendale Chocolate Factory, a small manufacturer of high quality souvenir chocolates (Canadian flags, etc.) has fixed costs of $4,000 per month. The cost of labour and materials for each unit produced is $2.50. Assume that the company can sell up to 10,000 units per month at a selling price of $4.50 per unit. At what level of monthly sales (in units) does the company break even? Show your calculations.
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