Question: Jerry is considering buying a company if it will break even or earn net income on revenues of $100,000 per month. The company that Jerry

Jerry is considering buying a company if it will break even or earn net income on revenues of $100,000 per month. The company that Jerry is considering sells each unit it produces for $5. Use the following cost data to compute the variable cost per unit and the fixed cost for the period. Calculate the break-even point in sales dollars. Should Jerry purchase this company?

Volume (units) Total Cost

8,000 $70,000

68,000 $190,000

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