Question 1: A company breaks even with sales of $600,000. What profit will it make if it sells $800,000 worth of goods, the variable costs of which are $600,000? You may assume that variable costs change directly in proportion to sales.
Question 2: If sales are $600,000 (at $10 per unit), fixed costs are $100,000 and profits are $100,000, what is the break-even point?
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