Lets assume that steve in exercise 6 also decided to make, Financial Management

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Lets assume that steve in exercise 6 also decided to make

Let's assume that Steve in Exercise 6 also decided to make birdhouses. He can make 7 birdhouses a day at a $3 variable cost per unit.

Given that his fixed cost stays at $3,000 and that he can sell each birdhouse at $10 but would need to wait for 10 days to collect his revenue, calculate:

(a) Break-even time

(b) Break-even revenue

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Financial Management: Lets assume that steve in exercise 6 also decided to make

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Financial Management: Lets assume that steve in exercise 6 also decided to make

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