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Can someone explain? Assume the selling price of snack packs is $7.50 with variable cost per unit of $5. Would an extra $1,125 in sales
Can someone explain?
Assume the selling price of snack packs is $7.50 with variable cost per unit of $5. Would an extra $1,125 in sales make snack packs profitable long term? * * Nelson's snack packs (NSP) sells three products. Kebabs Pizza Snack Pack Total Sales $5,000 $6,000 $750 $11,750 Variable expenses $2,000 $3,000 $500 $5,500 Contribution margin $3,000 $3,000 $250 $6,250 Traceable fixed exp 1,000 1,000 750 $2,750 Segment margin $2,000 $2,000 ($500) $3,500 Common fixed costs ($1,500) Net Profit $2,000 Yes No Assume the selling price of snack packs is $7.50 with variable cost per unit of $5. What is the minimum increase in sales needed for snack packs to break even? * MT Nelson's snack packs (NSP) sells three products. Kebabs Pizza Snack Pack Total Sales $5,000 $6,000 $750 $11,750 Variable expenses $2,000 $3,000 $500 $5,500 Contribution margin $3,000 $3,000 $250 $6,250 Traceable fixed exp 1,000 1,000 750 $2,750 Segment margin $2,000 $2,000 ($500) $3,500 Common fixed costs ($1,500) Net Profit $2,000Step by Step Solution
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