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Cost structure

generally has little impact on profitability.

cannot be significantly changed by companies.

refers to the relative proportion of operating versus nonoperating costs that a company incurs.

refers to the relative proportion of fixed versus variable costs that a company incurs.

23

A company sells a product which has a unit sales price of $5, unit variable cost of $2 and total fixed costs of $240000. The number of units the company must sell to break even is

120000 units

80000 units.

480000 units.

48000 units.