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A company has different output levels, and incurs different total production costs at each Level, as follows.
Output (Units) 6000 44,700
Total Cost ($) 8000 57,700
Required:
Question 1: If the selling price is $8/unit at all levels, what is the B.E.P.?
Question 2: What is the breakeven revenue?
Question 3: Calculate the margin of safety if the budgeted sales being 5,000 units.
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