Maple Enterprises sells a single product with a selling price of $82 and variable costs per unit of $32. The company’s monthly fixed expenses are $19,585. What is the company's break-even in dollars? Round to the nearest dollar, no decimals.
Maple Enterprises sells a single product with a selling price of $82 and variable costs per unit of $32. The company’s monthly fixed expenses are $19,585. What is the company's break-even in dollars? Round to the nearest dollar, no decimals.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Maple Enterprises sells a single product with a selling price of $82 and variable costs per unit of $32. The company’s monthly fixed expenses are $19,585.
What is the company's break-even in dollars? Round to the nearest dollar, no decimals.
Expert Solution
Introduction:
Break-even point is the point or level where the company is making no profit or loss.
It represents the level where the company covers total costs, both fixed and variable costs.
At break-even point, the total profit of the company is zero.
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