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Given the following cost structure, calculate Blendco, Inc.?s breakeven dollar sales: Cost of goods sold equal to 50% of sales Sales salaries totaling $1,000,000 plus
Given the following cost structure, calculate Blendco, Inc.?s breakeven dollar sales: Cost of goods sold equal to 50% of sales Sales salaries totaling $1,000,000 plus 10% commission on each sale Advertising expenditures of $500,000 Freight expenses equal 10% of sales Marketing staff costs equal $250,000 per year Indirect overhead equals $600,000 Hint: COGS, commissions, and freight comprise the variable costs. Use 70% to determine the contribution margin.
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