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Question - Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2009 for its Elite Quality golf club sets:
Revenues (400 sets sold @ $600 per set) $240,000
Varaiable costs $160,000
Fixed costs $50,000
How many sets of clubs must be sold for Tee Times, Inc. to reach their breakeven point?
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What is the historical cost concept and how does it relate to verify ability?
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