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Cantor Products sells a product for $75.Variable costs per unit are $50,and monthly fixed costs are $75,000.Answer the following questions:
a.What is the break-even point in units?
b.What unit sales would be required to earn a target profit of $200,000?
c.Assume they achieve the level of sales required in part b,what is the degree of operating leverage?
d.If sales decrease by 30% from that level,by what percentage will profits decrease?
Self-Sustained Growth
Economic growth that is maintained without external assistance, driven by internal factors such as investment in technology and efficiency improvements.
Dependency
A situation where an entity relies on another for support, resources, or needs, often leading to a subordinate relationship.
International Debts
Financial obligations owed by one country to foreign lenders, which can include governments, corporations, or international financial institutions.
Economic Growth
An increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real gross domestic product (GDP).
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