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thanks so much Caspian Industrial Solvents produces industrial solvents. The budgeted income statement using the contribution margin approach is as follows: Sales (137,000 units @
thanks so much
Caspian Industrial Solvents produces industrial solvents. The budgeted income statement using the contribution margin approach is as follows: Sales (137,000 units @ $50 each) $6,850,000 Less: Variable costs Contribution margin 3,425,000 Less Fixed costs Operating income $425.000 Sextra points 1.) Calculate the break-even point in Sand units. 2) The twner is considering an increase in advertising by $100,000 and cutting the selling price to $45 - variable costs per unit will remain the s e ctions are the sales will increase by 20.000 units Good decision or not? What if the advertising generated an additional 40,000 units, now is it a gooddechon, or not? 3.) Go back to the original data, and now Caspian is considering purchasing robotic equipment that will increase fixed costs to $4.200,000 per year, but reduce variable costs to 15 of sales less overtime less wasteet Good decision or not WHY? AND WHAT WOULD BE THE INDIFFERENCE POINT OF THESE TWO SCENARIOSStep by Step Solution
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