Determine breakeven quantity

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Q. Excelsior, Inc., makes water treatment machines for homes. These machines are referred to as EXCELA, also Excelsior, Inc. is trying to decide whether or not to build a new plant in Southern California. Plant will have annual fixed costs of $2,000,000 also variable costs of $800 for each EXCELA marked. Sales price is $1,000 for each EXCELA.

Determine breakeven quantity (Show work).

 

Reference no: EM1376562

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