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CFA Level 1
Corporate Finance

ABC Corp. Breakeven Analysis Question

Hard Measures Of Leverage Breakeven Analysis

ABC Corp. is analyzing its operating performance and wants to determine the breakeven point for a new product. The company has fixed operating costs of $200,000, and it operates with a contribution margin ratio of 40%. If the product is priced at $50 per unit, how many units must ABC Corp. sell to break even?

Hint

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