If the fixed costs of a company are USD 4,000,000, the unit variable cost is USD 200 and the unit selling price is USD 400. It is asked: (a) What is the break-even point in units and in dollars? b) What is the break-even point in units if the fixed costs double? and if they decrease by half?
If the fixed costs of a company are USD 4,000,000, the unit variable cost is USD 200 and the unit selling price is USD 400. It is asked: (a) What is the break-even point in units and in dollars? b) What is the break-even point in units if the fixed costs double? and if they decrease by half?
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Course: Costs and Budgeting
If the fixed costs of a company are USD 4,000,000, the unit variable cost is USD 200 and the unit selling price is USD 400.
It is asked:
(a) What is the break-even point in units and in dollars?
b) What is the break-even point in units if the fixed costs double? and if they decrease by half?
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