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Question
Citation Manufacturing produces electronic components that sell for $600 each. The fixed production costs are $720,000 when 30,000 or fewer components are produced, and variable production costs are $510 per component. What is Citation's operating breakeven point?
a. 8,000 components
b. 1,200 components
c. 1,412 components
d. $720,000 in sales
e. $389,189 in sales
Answer
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Related questions
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Q:
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e. Firms with relatively low debt ratios have higher expected returns when business is poor.