Break-even point for the falcon corporation

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The Falcon Corporation has the capacity to manufacture 400,000 bird houses per year. At that level of production, its variable costs are $1,000,000 and its fixed costs are $500,000. Budget projections for next year show sales of 300,000 bird houses at $5 each.

1. What is the break-even point for the Falcon Corporation?

2. At 300,000 bird houses, what is the projected profit? Prepare an income statement ro prove your answer.

Reference no: EM131040303

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