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?(?Break-even point and operating leverage?) Footwear Inc. manufactures a complete line of? men's and? women's dress shoes for independent merchants. The average selling price of its finished product is ?$85 per pair. The variable cost for this same pair of shoes is ?$50. Footwear Inc. incurs fixed costs of ?$190,000 per year.
a. What is the? break-even point in pairs of shoes sold for the? company?
b. What is the dollar sales volume the firm must achieve to reach the? break-even point?
c. What would be the? firm's profit or loss at the following units of production? sold: 7,000 pairs of? shoes? 11,000 pairs of? shoes? 16,000 pairs of? shoes?
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