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Xelga [282]
2 years ago
13

Darwin Inc. sells a particular textbook for $20. Variable expenses are $14 per book. At the current volume of 50,000 books sold

per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
Business
1 answer:
Ksenya-84 [330]2 years ago
7 0

Answer:

Fixed costs= $300,000

Explanation:

Giving the following information:

Selling price per unit= $20

Variable expenses= $14

Break-even point in units= 50,000

<u>To calculate the fixed costs, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

50,000= fixed costs / (20 - 14)

50,000*6= fixed costs

Fixed costs= $300,000

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