Break-even point in dollar, Strategic Management

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  You are considering shortly opening a copier serving center near a university.  Your estimate of fixed cost is at $15,000 a year and the variable cost for every copy made is $0.01.  You expect to charge your copier services at $0.05 a copy.

(a)    What is your break-even point in terms of units of copies made?

(b)    What is your break-even point in dollars?


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