Define cash expenditures related to fixed costs

Reference no: EM131787350

Question: Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $6,000,000, but 25 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $4. How many units does the firm need to sell to reach the cash break-even point?

Reference no: EM131787350

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