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Determine the break-even point

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Reference no: EM133118182

A firm makes a product on a single machine. Leasing the machine costs $2,000, running the machine for an hour costs $60, the machine processes 8 units of the product in one hour, the product can be sold for $10.50. We will assume that all units that are made can also be sold.

(a) Determine the break-even point.

(b) What happens if the machine has a capacity of 90 hours? What is your decision?

Reference no: EM133118182

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