Firms operating breakeven point in units, Accounting Basics

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Firms operating breakeven point in units

Problem:

Books Galore, Inc. has annual fixed operating costs of $10,000; the average selling price per book is $24.00, and the firm's variable cost per book is $14.00.

Requirement:

Question 1: What are the firms operating breakeven point in units?

Question 2: What are the firms operating breakeven point in sales dollars?

Note: Please provide appropriate explanations to support your answer.

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Accounting Basics: Firms operating breakeven point in units

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Accounting Basics: Firms operating breakeven point in units

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