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If you were producing and selling wine at $5.00 per bottle with variable costs and expenses...

If you were producing and selling wine at $5.00 per bottle with variable costs and expenses of $3.00 per bottle and your total fixed operating costs and expenses were $100,000, how many bottles would you need to sell to break even?

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Answer #1

Break even units = Fixed costs / Contribution margin per unit

Break even units = $100,000 / ($5.00 - $3.00)

Break even units = 50,000 bottles

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