Determining the break-even quantity
Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50 per unit. If it sells the product for $75 per unit, what is the breakeven quantity?
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A firm sells $100,000 of its accounts receivable to factors at a 2 percent discount. The firm's average collection period is one month. What is the dollar cost of the factoring service?
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