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Mix Sweet Shop bakes and sells pies
Mix Sweet Shop bakes and sells pies. Mix has annual fixed costs of $880,000 and a variable cost per pie of $7.50. Each pie sells for $15.50 each. The firm expects to sell 500,000 pies annually. What is the break-even point in sales dollars?
a. $2,875,000
b. $1,625,000
c. $3,100,000
d. $1,705,000
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