ACCT 505 Week 3 Discussion 2

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Let’s say that a company produces a single product with a sale price of $25 per unit. The variable cost per unit is $15 and the company incurs fixed costs of $50,000 per month. What is the break-even point for this company? How much would we expect in profit for every unit sold above break-even? What if the company has its budget set at $35,000 target profit? How many units must it sell?