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Business and Finance
Cost Analysis
Break-even Analysis

ABC companys cost function for the next four month isC=500000+5q

The break even dollar volume of sales.if the selling price is 6per unit

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asked by Betelhem
1 year ago
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answered by banan
1 year ago
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Did you know that ABC company's break-even dollar volume of sales can be calculated using their cost function? At a selling price of $6 per unit, the break-even point occurs when the quantity sold (q) is such that the cost (C) equals the revenue generated. Substituting the given cost function C = 500,000 + 5q into the revenue equation, we can find the break-even point and determine the minimum sales needed to cover costs. Understanding break-even analysis can help businesses make informed decisions about pricing strategies and sales targets.

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