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8. Hartl Corporation is a single product firm with the following selling price and cost structure for next year:

How many units will Hartl have to sell next year in order to break-even?

  • a.

    121,500

  • b.

    202,500

  • C.

    303,750

  • d.

    546,750

Variable cost per unit = $1.80 × (1 - 40%) Variable cost per unit = $1.08 Sales = Variable expenses + Fixed expenses + Profit

$1.80Q = $1.08Q + $218,700 + $0 $0.72Q = $218,700

Q = $218,700

$0.72 per unit = 303,750 units

9. Data concerning Buchenau Corporation's single product appear below:

The break-even in monthly unit sales is closest to:

  • a.

    3,111

  • b.

    6,892

  • C.

    4,040

  • d.

    13,525

Sales = Variable expenses + Fixed expenses + Profit

$150.00Q = $34.50Q + $466,620 + $0 $115.50Q = $466,620

Q = $466,620

$115.50 per unit = 4,040 units

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