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Bobby Company has fixed costs of $750,000 per year for a product. The current selling price of the finished product per unit is $100, and the variable cost per unit is $40.
a) What is current breakeven point in units for the company?
b) What is the dollars sales volume the firm must achieve to reach the breakeven point?
c) What would be the firm's profit or loss at the following units of production sold:
12,000 units?
20,000 units?
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