What is the break-even point

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Reference no: EM13667002

The Smith Company's fixed costs for the year are estimated at $1,000,000. The variable costs are usually about 70 Percent of sales. Sales for the coming year are expected to reach $3,800,000.

1.What is the Break-even Point?
2.Expected profit at a sales level of $3,800,000?
3. If sales are only $2,000,000 should the company shut down? why?

Reference no: EM13667002

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