ACCT 505 Week 3 DQ 2 (Updated)

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ACCT 505 Week 3 DQ 2 (Updated)

Let’s say that a company produces a single product with a sale price of $25 per unit. The variable cost per unit is $15 and the company incurs fixed costs of $50,000 per month. What is the breakeven point for this company? How much would we expect in profit for every unit sold above breakeven? What if the company has its budget set at $35,000 target profit? How many units must it sell?

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