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Business Math The current situation of XZ company is as follows: Variable costs are 84% of sales and fixed costs are $40000. a) A suggestion
Business Math
The current situation of XZ company is as follows: Variable costs are 84% of sales and fixed costs are $40000. a) A suggestion is made to improve the profit by increasing the contribution margin. If the contribution margin can be improved by 6% of sales by increasing fixed costs by $10000, will the break even point be lower? b) If sales are currently $300000, will the profit be better, assuming no increase in sales? 14. a) Will a company have a better break even point if they change their variable costs from 78% to 68% but have to increase their fixed costs from $80000 to $90000 ? b) What is the difference in dollars Step by Step Solution
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