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Expenses between fixed and variable cost per unit

Task: Break-even analysis

Air Filter, Inc., sells its products for $6 per unit. It has the following costs:

Rent                             $100,000
Factory labor              $1.20 per unit
Executive salaries           $89,000
Raw material               $.60 per unit

Separate the expenses between fixed and variable cost per unit. Using this information and the sales price per unit of $6, compute the break-even point.

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Finance Basics: Expenses between fixed and variable cost per unit

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