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Fixed cost = 300000

Contribution margin ratio = (sales - variable cost) / sales

Contribution margin ratio = (10 - 7 ) / 10

Contribution margin ratio = .3

breakeven point = 300000 / .3 = 1000000

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Q: What is the breakeven of a fixed cost equal 300000 the price per unit equals 10 and the variable cost per unit equals 7?
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If a firm has a price of 4.00 variable cost per unit of 2.50 and a breakeven point of 20000 units fixed costs are equal to?

Breakeven is when Sales minus Variable Cost minus Fixed Cost = 0 Here we have: (20,000 x 4.00) - (20,000 x 2.50) - FC = 0 80,000 - 50,000 - FC = 0 30,000 - FC = 0 So Fixed Cost = 30,000


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