Question: 2 . 1 Assume a fixed cost for a process of $ 1 5 , 0 0 0 . The variable cost to produce each

2.1 Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. What is the number of units that have to be produced and sold to break even?
2.2 Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. What is the number of units that have to be produced and sold to break even?
2.3 You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. What will be the total margin at the end of the product life?

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