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Zealz Manufacturing produces a single product that sells for $90. Variable costs per unit equal $30....

Zealz Manufacturing produces a single product that sells for $90. Variable costs per unit equal $30. The company expects total fixed costs to be $70,000 for the next month at the projected sales level of 2300 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. What is the current breakeven point in terms of number of units?

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Answer #1

Contribution margin per unit= Sales price per unit-Variable costs per unit

= $90-30= $60

Current break-even point in terms of number of units= Fixed costs/Contribution margin per unit

= $70000/60= 1167 units

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