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Cost-Volume-Profit Analysis at BMW Values: Selling Price per Unit: $90,000 Variable Cost per Unit: $70,000 Fixed Costs: $12,000,000 Requirements: Calculate the break-even point in units.

Cost-Volume-Profit Analysis at BMW

Values:

  • Selling Price per Unit: $90,000
  • Variable Cost per Unit: $70,000
  • Fixed Costs: $12,000,000

Requirements:

  1. Calculate the break-even point in units.
  2. Determine the sales volume needed to achieve a profit of $3,000,000.
  3. Analyze how changes in fixed costs impact the break-even point.
  4. Recommend strategies to improve profitability.

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