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Break-even and target profits

Management

Break-even and target profits. Analysis of the operations of Padillo Company shows the

fixed costs to be $20 0,000 and the variable costs to be $8 per unit. Selling price is $16 per

unit.

a. Derive the break-even point expressed in units.

b. How many units must the firm sell to earn a profit of $280,000?

c. What would profits be if revenue from sales were $2,000,000?

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