The following costhevenue data was obtained for evaluation of the various shutdown and break-even points. The expected production quantity is 1000 units.
a. What is the shutdown point, in hours? (3000)
b. What is the break-even point at cost, in hours? (1000)
c. What is the cost per unit at the break-even cost point? ($35.00)
d. What is the break-even point at required return after taxes? (794.7) e. Plot the profitability diagram for this problem.
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