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Cost-Volume-Profit (CVP) Analysis at Etsy Values: Fixed Costs: $12,000,000 Variable Costs per Sale: $2 Average Revenue per Sale: $10 Number of Sales: 1,500,000 Requirements: Calculate
Cost-Volume-Profit (CVP) Analysis at Etsy
- Values:
- Fixed Costs: $12,000,000
- Variable Costs per Sale: $2
- Average Revenue per Sale: $10
- Number of Sales: 1,500,000
- Requirements:
- Calculate the total contribution margin.
- Determine the breakeven point in sales and revenue.
- Discuss the implications of CVP analysis for Etsy’s business model.
- Suggest strategies to enhance profitability.
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