Question
First year sales revenue for coffee sleeves is estimated to be $2,000,000. The average sales price is $18 per unit with the variable expense per
First year sales revenue for coffee sleeves is estimated to be $2,000,000. The average sales price is $18 per unit with the variable expense per unit at $13. This results in a contribution margin of $5 per unit. The sales volume in the first year is estimated to be 500,000 units. Estimated fixed costs for the first year are $12,000,000. Using the contribution margin method to estimate losses in the first year. At this rate, break even will be reached when sales reach when? What year is this estimate to take place . Break-even analysis assumes Variable costs are $13 per unit. (a) When will you break-even? (B) Break-even Table/Chart ? (C) Explanation of the Break-even Table/Chart ?
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