Solved: Andromeda companys break-even point is 2400 units variable, Accounting Basics

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Andromeda companys break-even point is 2400 units variable

Problem - Using the Break-Even Equations to Solve for Price and Variable Cost per Unit

Solve the following independent problems.

Required:

1. Andromeda Company's break-even point is 2,400 units. Variable cost per unit is $42; total fixed costs are $67,200 per year. What price does Andromeda charge?

2. Immelt Company charges a price of $6.50; total fixed cost is $314,400 per year, and the break-even point is 131,000 units. What is the variable cost per unit?

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Accounting Basics: Andromeda companys break-even point is 2400 units variable

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