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PepsiCo prepares a sales budget for its beverage division. In May 2040, the following data is provided: Expected Sales Volume: 500,000 units Selling Price per

PepsiCo prepares a sales budget for its beverage division. In May 2040, the following data is provided:

  • Expected Sales Volume: 500,000 units
  • Selling Price per Unit: $2.50
  • Variable Cost per Unit: $1.50

Requirements:

  • Prepare a sales budget.
  • Calculate the total expected revenue.
  • Determine the contribution margin.
  • Analyze the impact of sales volume changes on profitability.

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