Calculate the number of units needed to break-even

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Griffin buys and sells ladies' handbags. The average selling price is $560 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $180 per bag. Griffin's fixed costs equal $1,744,000 per year.

Problem 1: Calculate the number of units needed to:

1. Break-even: Answer

2. Earn $251,000 income: Answer

3. Earn income equal to 24% of total sales: Answer

Reference no: EM132803952

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