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Factory X manufactures steam cleaners for engines and has a high level of sales variability. The units sell for $3,200 each but each unit contains about $1,280 in components and direct labor cost....

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Factory X manufactures steam cleaners for engines and has a high level of sales variability. The units sell for $3,200 each but each unit contains about $1,280 in components and direct labor cost. Factory X also keeps the plant open even when sales are low at a cost of approximately $1,000,000 per year. Answer the following questions: List some examples of fixed costs for a typical manufacturing plant. How much are the variable costs in this example? What is the break-even level of units in this example? What is the break-even level of sales in this example?
Answered Same Day Dec 26, 2021

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Robert answered on Dec 26 2021
113 Votes
Questions:
Factory X manufactures steam cleaners for engines and has a high level of sales variability. The
units sell for $3,200 each but each unit contains about $1,280 in components and direct labor
cost. Factory X also keeps the plant open even when sales are low at a cost of approximately
$1,000,000 per year.
Answer the following questions:
List some examples of fixed costs for a typical manufacturing plant.
How much are the variable costs in this example?
What is the
eak-even level of units...
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