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Devry University
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Devry University
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Abercrombie & Fitch.
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Abercrombie & Fitch.
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Exercise E Peter Garcia Meza is considering buying a company if it will break even or earn net income on revenues of USD 80,000 per month. The company that Peter is considering sells each unit it produces for USD 5. Use the following cost data to compute the variable cost per unit and the fixed cost for the period. Calculate the break-even point in sales dollars. Should Peter buy this company?
Volume (units)Â Cost
8,000 $70,000
68,000 190,000
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