In a recently opened shopping mall, Jagdeep sells handmade coffee mugs in abooth for $25 each and has calculated that he needs to sell 200 mugs to break even. Calculate his variable costs if his fixed costs are $2400? Which of the following answers is correct?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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In a recently opened shopping mall, Jagdeep
sells handmade coffee mugs in abooth for $25
each and has calculated that he needs to sell
200 mugs to break even. Calculate his variable
costs if his fixed costs are $2400? Which of the
following answers is correct?
Transcribed Image Text:In a recently opened shopping mall, Jagdeep sells handmade coffee mugs in abooth for $25 each and has calculated that he needs to sell 200 mugs to break even. Calculate his variable costs if his fixed costs are $2400? Which of the following answers is correct?
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