You are a management analyst for XYZ aircraft manufacturing company. Your company currently manufactures and sells four
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You are a management analyst for XYZ aircraft manufacturing company. Your company currently manufactures and sells four different types of aircraft. Historically, each aircraft type constitutes 25% of the total revenue. For each aircraft type the unit contribution margin, expressed as a per cent of sales, is different. If this year the sales mix is different than the historical average, explain what affect this would have on the breakeven point?
Contribution Margin Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Break Even point is the point at Sales would lead to no profit or no Loss situation Breakeve...View the full answer
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