A company is using the profitability threshold as a performance benchmark for its current fiscal year. The company has budgeted sales of $100,000, with direct material costs of $30,000, direct labor costs of $30,000 and a rent of $40,000. The budget was based on an estimated production of 10,000 units. Calculate the break-even point for the current year.

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To calculate the breakeven point you need to determine the level of sales at which total costs equal ... View the full answer