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You may need the following equations. BEP quantity Fixed cost investment/Unit Margin; . Contribution Unit Margin in $ = Price - Variable Costs; Total Contribution
You may need the following equations. BEP quantity Fixed cost investment/Unit Margin; . Contribution Unit Margin in $ = Price - Variable Costs; Total Contribution Margin in $ = difference between total revenue and total variable costs e One of my colleagues loves to bake. In fact, she loves it so much that she is thinking of opening her own specialty shop where she sells her baked goods. Please work through the following real life problems that she must answer before she undertakes this potential new business. The selling prices for her loaves of bread are $7 per loaf with variable costs of $4. She anticipates selling 90 loaves per week. What is the total contribution margin (in $) per week? $630 $270 $4 $360 $720
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