Question
The following information is available from the accounting records of EVA Corporation: Fixed cost per period is $4800. Sales volume for the last period was
The following information is available from the accounting records of EVA Corporation: Fixed cost per period is $4800. Sales volume for the last period was $19360, and variable cost was $13552. Capacity per period is a sales volume of $32000. a) Compute i) The contribution margin; ii) The contribution rate. b) Compute the break-even point i) In sales dollars; ii) As a percent of capacity. c) Draw a detailed break-even chart. Marks are awarded for determining the revenue and cost functions, cocrectness of plotted points and lines, correct labeling of axes, and overall neatness of the graph. d) For each of the following independent situations, determine the break-even point: i) Fixed cost is increased
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