Question 1: Break-Even Analysis A company sells a product for $25 per unit. The variable cost per unit is $15, and the total fixed costs are $50,000. a) How many units must the company sell to break even? b) If the company wants a profit of $10,000, how many units must it sell?

Question 1: Break-Even Analysis A company sells a product for $25 per unit. The variable cost per unit is $15, and the total fixed costs are $50,000. a) How many units must the company sell to break even? b) If the company wants a profit of $10,000, how many units must it sell?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 1P

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Question

Question 1: Break-Even Analysis

A company sells a product for $25 per unit. The variable cost per unit is $15, and the total fixed costs are $50,000.

a) How many units must the company sell to break even?
b) If the company wants a profit of $10,000, how many units must it sell?

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