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Given the following information: Selling Price (per unit): $10,000 Contribution Margin (per unit): $3,000 Fixed Costs: $200,000 Required Each of these are separate situations: What
Given the following information:
Selling Price (per unit): $10,000
Contribution Margin (per unit): $3,000
Fixed Costs: $200,000
Required
Each of these are separate situations:
- What is the break-even point in total sales in dollars?
- How many units need to be sold to make a profit of $20,000?
- How many units need to be sold to make a profit of $20,000 if fixed
- costs increase from $200,000 to $250,000?
- How many units would they need to sell if they wanted to double
- profit, and the current number of units sold is 200?
- What is your decision-making interpretation for each?
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