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Exercise 16-18 Break-Even in Sales Revenue, Changes in Variables OBJECTIVE 2 OBJECTIVE 5 Carmichael Corporation is in the process of preparing next year's budget. The
Exercise 16-18 Break-Even in Sales Revenue, Changes in Variables OBJECTIVE 2 OBJECTIVE 5 Carmichael Corporation is in the process of preparing next year's budget. The pro forma income statement for the current year is as follows: Details REQUIRED: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a $60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
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