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I. Explain the difference between Variable Cost Income Statement and Direct Method Income Statement, when will the net profit be equal and when not

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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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