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Kantor, Inc

question 22

Essay

Kantor, Inc., produces and sells a single product whose selling price is $180.00 per unit and whose variable expense is $46.80 per unit. The company's fixed expense is $580,752 per month.
Required:
Determine the monthly break-even in either unit or total dollar sales. Show your work!

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Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume.

Trade-In Allowance

The amount credited to the buyer by the seller when the buyer trades in an old item towards the purchase of a new item.

Retain Or Replace

A decision-making process regarding whether to keep an existing asset or replace it with a new one, considering aspects such as costs, benefits, and performance.

Relevant Cost

Costs that should be considered when making a decision because they will affect the future and they differ among alternatives.

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