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Mini-Case 12-4: Calculating the Break-Even Point

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Mini-Case 12-4: Calculating the Break-even Point
A small manufacturer plans to sell tents for $120 each. The variable cost for each tent is $90. Fixed costs for the process are estimated to be $36,000. How many tents must the company sell to break-even?
-Suppose that the manufacturer desires a profit of $9,000 on this product. How many units must be sold?


Definitions:

Distal Phalanx

The small bone at the tip of the fingers and toes, being furthest from the body.

Intermediate Cuneiform

A bone in the human foot located between the other two cuneiform bones and connects to the second metatarsal.

Lateral Cuneiform

One of the bones in the foot positioned within the tarsal region, contributing to foot structure and function.

Lateral Malleolus

The bony prominence on the outer side of the ankle, formed by the lower end of the fibula, involved in ankle stabilization.

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