Question 1:
Given the following information: determine;
Selling Price | $17 |
Fixed Expenses | |
Selling & Administrative | $130,000 |
Interest Expense | $10,000 |
Variable Expenses | |
Cost of goods Sold | $4 |
Selling and Administrative | $3 |
- What is the company’s contribution margin?
- What is the break-even points in units?
- If the company wants to earn a profit of $42,000 instead of breaking even, what is the number of units the company must sell?
- Why is it important to understand the importance of break-even analysis in a business?
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Contribution Margin and Break-even Point was first posted on February 24, 2021 at 1:10 am.
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