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Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $600,000 and a contribution margin of 95% of revenues. feels
Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $600,000 and a contribution margin of 95% of revenues.
feels like he's in a giant squeeze play: The automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs.
contribution margin has shrunk to 65% of revenues. The company's monthly operating income, prior to these pressures, was $359,500.
To maintain this same level of profit, what sales volume (in sales revenue) must now achieve?
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