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Original Break-even calculations Sales (total number of shoes sold in a month x selling price each shoe) 100,000 Variable costs (40%) (40,000) Contribution margin (Sales

Original Break-even calculations

Sales (total number of shoes sold in a month x selling price each shoe) 100,000
Variable costs (40%) (40,000)

Contribution margin

(Sales - Variable costs)

60,000
Fixed costs - given (35,000)

Operating income

(Contribution margin - fixed cost)

25,000
Break-even point (fixed costs / variable costs per unit) = 583.33 units

Respond to the following:

  • How did you calculate the original operating income and break-even point before changes?
    • Detail how you calculated contribution margin, operating income, and break-even point.

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