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lozanna [386]
4 years ago
8

RST compay produces a product that has a variable cost of $6 per unit. The companys fixed costs are $30,000. the product sells f

or $10 per unit. how many units muct be produced to break even
Business
1 answer:
Amiraneli [1.4K]4 years ago
7 0

Answer:

7,500 units

Explanation:

The break-even point is the point in which the earnings and the costs are the same and there is no gain or loss. The formula to calculate the break-even point in units is:

Break-even point in units= Fixed Costs/(Sales price per unit – Variable costs per unit)

Now you have to replace the values given to find units that have to be produced to break even:

Break-even point in units=30,000/(10-6)

Break-even point in units=30,000/4

Break-even point in units=7,500

The answer is that the units that have to be produced to break even are 7,500.

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This is the case here. WaterGlove was unable to pay the dividends in the past year and so now that they are able to, they must pay the dividends that are owed as well as the current one because no dividend will be foregone. They must all be paid.

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