16 - [Question Air Purifier Inc computes its break-even point strictly on the basis of cash expenditures related to fixed costs Its total fixed costs

16 - [Question Air Purifier Inc computes its break-even...

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[Question]Air Purifier Inc. computes its break-even point strictly on the basis of cash expendituresrelated to fixed costs. Its total fixed costs are $2,450,000, but 15 percent of this value isrepresented by depreciation. Its contribution margin (price minus variable cost) for eachunit is $40. How many units does the firm need to sell to reach the cash break-even point?
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  • Winter '15
  • Arshad
  • Total fixed costs, $2,450,000, $2,082,500

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