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Break-even analysis [LO2]

The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $35 and has a variable cost of $22. There are $97,500 in fixed costs involved in the production process.

a. Compute the break-even point in units.

Break-even point units = ____________

b. Find the sales (in units) needed to earn a profit of $262,500. (Round your answer to the nearest whole number.)

Sales quantity needed unitsc = ___________

Financial Management, Finance

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