How many units does the firm need to sell

Reference no: EM131787273

Question: Calloway Cab Company determines its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $400,000, but 20 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $3.60. How many units does the firm need to sell to reach the cash break-even point?

Reference no: EM131787273

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