Break-Even Analysis (based on a question from a CPA exam) The Oliver Company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 5,500 units in 2005. The selling price will be $2 per unit. Variable costs are estimated to be 40% of total revenue. Fixed costs are estimated to be $6,000 for 2005. How many units should the company sell to break even?
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