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  3. a company produces widgets and has fixed costs of

A company produces widgets and has fixed costs of $ 1 0 ,...

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Verified Solution

Question

Accounting

A company produces widgets and has fixed costs of $
1
0
,
0
0
0
per month. The variable cost per widget is $
2
,
and each widget sells for $
5
.
a
)
Calculate the break
-
even point in units.
b
)
How many units must be sold to achieve a monthly profit of $
6
,
0
0
0
?

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