Calloway cab company computes break-even point strictly on, Finance Basics

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Calloway cab company computes break-even point strictly on

Question: Calloway Cab Company computes break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $400,000, but 20 percent of this value is represented by amortization. Its contribution margin(price variable cost) for each unit sold is $3.60. How many units does the firm need to reach the cash break-even point?

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