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You are considering opening a copy service in the student union. You estimate your fixed cost at $18,000 and the variable cos
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Answer #1

BREAK EVEN IN DOLLARS = FIXED COST / (1 - (V / P))

FIXED COST = 18000
VARIABLE COST = 0.03
PRICE PER UNIT = 0.09

BREAK EVEN IN DOLLAR = 18000 / (1 - (0.03 / 0.09)) = 27000

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