Question

16. Longstreet Inc. has fixed operating costs of $495, 000, variable costs of $2.50 per unit produced, and its product sells
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Answer #1

Ans a) 291,176

Break Even Point = Fixed cost / Contribution per unit

                         = Fixed Cost / (Sales price - Variable costs)

                         = 495000 / ( 4.20 - 2.50)

                         = 291176 units

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