Calculate its break-even level of output

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Suppose a company has a fixed cost of $200,000 and a variable cost per unit of $14. It sells its product for $19.

a. Calculate its break-even level of output.

b. Calculate how much it must produce to make $100,000, assuming it can sell it all.

c. If it can outsource, and buy the product wholesale from a distributor at $16 each, over what level of output should it buy from the wholesaler, and over what level should it produce on its own?

Reference no: EM132153794

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