Explain breakeven point analysis

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1. Jammers Company produces one product that is sold for $52 per unit. Variable costs are $34 per unit and total fixed costs are $72,000. What is the dollar amount of sales revenue needed to achieve a target profit (before tax) of $90,000?

2. Explain breakeven point analysis and how is it used in business?

3. Xiong Company sells its product for $65. The product has a variable cost of $25 and the company’s annual fixed costs are $250,000. Calculate the number of products that must be sold to earn a profit (before tax) of $35,000.

Reference no: EM131878433

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