Question
I. Explain the difference between Variable Cost Income Statement and Direct Method Income Statement, when will the net profit be equal and when not
I. Explain the difference between Variable Cost Income Statement and Direct Method Income Statement, when will the net profit be equal and when not equal. (40 Pts) II. As a wellknown pullover brand, we sell pullovers 50.000 units a year for 125.-$ with a contribution margin ratio 40%, a research on sales quantity showed that a 40% increase in production quantity will cause an increase in the contribution margin ratio 10%. (20 Pts) a) Compute the breakeven points in quantity and amount. b) Compute the quantity to sell to get a profit of 3.437.500.-$
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