Question: Calloway Cab Company determines its break even strictly on the basis
Calloway Cab Company determines its break-even strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $450,000, but 5 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $4.10. How many units does the firm need to sell to reach the cash break-even point?
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