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Homework answers / question archive / You own a small manufacturing business that produces widgets
You own a small manufacturing business that produces widgets. You have spent $600,000 acquiring the fixed assets you need to produce widgets. Each widget costs you $20 to make and they sell for $65 each, so your variable cost is 30.8% of the overall revenue.
At your current level of operating leverage, how many widgets must you sell to break even?
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