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Question: Footwear Inc. manufactures a complete line of? men's and? women's dress shoes for independent merchants. The average selling price of its finished product is ?$95 per pair. The variable cost for this same pair of shoes is ?$65. Footwear Inc. incurs fixed costs of ?$200,000 per year.

a. What is the break-even point in pairs of shoes for the company?

b. What is the dollar sales volume the firm must achieve to reach the break-even point?

c. What would be the firm's profit or loss at the following units of production sold: 4,000 pairs of shoes 12,000 pairs of shoes 18,000 pairs of shoes?

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Category:- Basic Finance
Reference No.:- M92814684

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