What does calculating the breakeven point show?
The ABC Co. has annual fixed costs of $200,000. Its product sells for $250 per unit. The variable cost per unit is $200. Sales for the coming year are projected to be $1,250,000. Given the preceding information, please answer the following questions:
What is the break even point?
How many total units do they anticipate selling?
Expected profit?
If sales are forecast at $875,000, should ABC Co. shut down?
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