Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 5, Problem 7P

Calloway Cab Company determines its break-even strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $450,000 , but 5 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $4 .10 . How many units does the firm need to sell to reach the cash break-even point?

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Loose Leaf for Foundations of Financial Management Format: Loose-leaf

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