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IV. Macho Menswear Company, makers of men's clothing, is currently prepaing production and sales forecasts for the coming fiscal year. The company needs to determine
IV. Macho Menswear Company, makers of men's clothing, is currently prepaing production and sales forecasts for the coming fiscal year. The company needs to determine the point at which the projected sales revenue will equal the total of all fixed and variable costs. Each completed garmct will sell for SP Variable costs are expected to be VC Fixed costs are estimated to be FC 345,000 a Calculate beakeven in sales units. Calculate breakeven in sales dollars. How many units have to be sold to make a profit of P 41,400 d Going back to the original equation, find the new break-even if If variable costs increase by + VC If fixed costs decrease by - FC (3,000) e Calculate the new breakeven in sales dollars. f How many units have to be sold to make a profit of P 5 7,000 Prepare a CVP income statement under (c) and (f) above
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