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Howl Corporation wants to determine its breakeven sales in both units and dollars for its Howl-1
model.
For the relevant period, Howl sold the Howl-1 for $200 per unit. Variable costs for the Howl-1
were $150 per unit. Fixed costs for the period were $5,000.
1. Show the equations for (a) revenues, and (b) total costs for the Howl-1 model.
2. Solve the equations to calculate the breakeven sales in both (a) units and (b) dollars.

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Howl Corporation wants to determine its breakeven sales in both units.pdf

  • 1. Howl Corporation wants to determine its breakeven sales in both units and dollars for its Howl-1 model. For the relevant period, Howl sold the Howl-1 for $200 per unit. Variable costs for the Howl-1 were $150 per unit. Fixed costs for the period were $5,000. 1. Show the equations for (a) revenues, and (b) total costs for the Howl-1 model. 2. Solve the equations to calculate the breakeven sales in both (a) units and (b) dollars.