Ama is making capacity decisions in her business, using break-even analysis. To calculate break even in units,
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Question:
Ama is making capacity decisions in her business, using break-even analysis. To calculate break even in units, she uses this formula: Fixed costs/profit per unit. If her fixed cost is $100,000 and her profit per unit is $10, what will be her break even point?
10,000 units 1,000,000 units 50,000 units
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