Calculate the operating breakeven point in units

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Play-More Toys produces inflatable beach balls, selling 400,000 balls per year. Each ball produced has a variable operating cost of $0.82 and sells for $1.09. Fixed operating cost are $25,000. The firm has annual interest charges of $6,200, preferred dividend of $1,900 and a 21% tax rate.

Problem 1: Calculate the operating breakeven point in units.

Reference no: EM132961182

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