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Calculate the break-even point

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An agribusiness firm is trying to assess its chances for success in a new market. Market research has estimated they will sell 3,000 bags of the product when the price is $50 per bag. The average variable cost is $35 per bag. The plant needed to service this market will require an investment of $42,000.

Calculate the break-even point and determine how much profit (or loss) the firm will have if they sell the estimated number of bags?

Reference no: EM133086362

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