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tensa zangetsu [6.8K]
3 years ago
10

A shoe company will make a new type of shoe. The fixed cost for the production will be $24,000. The variable cost will be $31 pe

r pair of shoes. The shoes will sell for $100 for each pair. How many pairs of shoes will have to be sold for the company to break even on this new line of shoes
Business
1 answer:
AlladinOne [14]3 years ago
8 0

Answer:

Break-even point in units= 348

Explanation:

Giving the following information:

The fixed cost for the production will be $24,000. The variable cost will be $31 per pair of shoes. The shoes will sell for $100 for each pair.

<u>To calculate the break-even point in units, we need to use the following formula:</u>

<u></u>

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

Break-even point in units= 24,000 / (100 - 31)

Break-even point in units= 347.82 = 348

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