Determining whether to add new product to existing facility

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You are determining whether to add a new product to an existing facility. You determine the fixed cost will be $50,000 for the year to add up to 1000 units of capacity per month. Variable cost will be $10 per unit. You believe demand will be 800 units per month at a price of $20 per unit. What is the break-even point?

$10

5,000 per month

417 per month

None of the above

Reference no: EM13869625

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