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Contribution Margin Concepts DiPinto Electric Guitars & Basses sells musical instruments in Philadelphia. Assume the following information comes from the company's prior year records. REQUIRED
Contribution Margin Concepts DiPinto Electric Guitars \& Basses sells musical instruments in Philadelphia. Assume the following information comes from the company's prior year records. REQUIRED a. Determine the annual break-even dollar sales volume. b. Determine the current margin of safety in dollars. c. Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maximum values of $1,000,000. Draw a vertical line on the graph for the current ($800,000) sales level, and label total variable costs, total fixed costs, and total profits at $800,000 sales. d. What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $50,000
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