Find BEP. (I
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You are given the following information:
Option I (Make) Fixed cost = $125,000 Variable cost = $15 per unit
%3D
%3D
Option II (Buy) Fixed cost = $5,000 Variable cost = $17 per unit.
%3D
%3D
1) Find BEP. (No need to solve graphically)
2) If the requirement is 100,000 units, what is the cost saving for choosing the cheaper
option?
A-
B.
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