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The articles talk about how these delivery business are trying to find ways to increase their contribution margin, either by increasing revenue per order or
The articles talk about how these delivery business are trying to find ways to increase their contribution margin, either by increasing revenue per order or reducing variable costs per order. Assume they can find a way to increase their contribution margin per unit to $5 and their contribution margin ratio to 10%. If fixed costs remain at $250,000 per year, now how many deliveries do they have to do each year to breakeven.
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