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The problem asks for the break-even quantity, given the following details:

- Annual fixed costs: $60,000
- Variable costs per unit: $35
- Revenue per unit: $55

### Formula for Break-even Quantity:
\[
\text{Break-even quantity} = \frac{\text{Fixed Costs}}{\text{Price per Unit} - \text{Variable Cost per Unit}}
\]

### Substituting the values:
\[
\text{Break-even quantity} = \frac{60,000}{55 - 35} = \frac{60,000}{20} = 3,000 \text{ units}
\]

So, the correct answer should be **3,000 units**, not 300 units.

Would you like more details or have any questions?

Here are some additional questions:
1. How does changing the fixed costs affect the break-even point?
2. What happens to the break-even point if the variable cost per unit increases?
3. How do you calculate profit after reaching the break-even quantity?
4. What is the relationship between price per unit and break-even quantity?
5. How could you reduce the break-even quantity?

**Tip:** The break-even analysis helps in understanding how costs and pricing impact your business's ability to cover its expenses.

An investment proposal will have annual fixed costs of $60,000, variable costs of $35 per unit of output, and revenue of $55 per unit of output. Determine the break-even quantity.

Learn how to calculate the break-even quantity for an investment proposal with annual fixed costs of $60,000, variable costs of $35 per unit, and a revenue of $55 per unit. This example demonstrates the break-even analysis formula and provides a step-by-step solution, suitable for students in Grades 10-12.

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