FOUND.OF FINANCIAL MANAGEMENT-ACCESS
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
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Chapter 5, Problem 9P

Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $6,500,000 , but 10 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $9 . How many units does the firm need to sell to reach the cash break-even point?

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