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You are starting a business and as part of your business plan you need to develop a break-even analysis. Your fixed costs (overhead)associated with your store are $1,000,000 annually, and your selling price per item is $2,500. If you have a labor cost of $500 per unit, marketing costs of $250 per unit, and other variable costs of $500 per unit, what is your break-even point of sales?
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