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Problem:

The average selling price of shoes is $95 per pair. The variable cost is $55. The company incurs fixed cost is $160,00 per year.

Required:

What is the break even point in pairs of shoes?
What is the dollar sales volume to reach the break even point?
What would be the profit or loss before EBIT at 4000, 11,000,16000 pairs of shoes?

Note: Please show how you came up with the solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148760

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