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Unformatted text preview: 464000-282850= 181150 Contribution Margin 150000 Fixed 31150 Net Income #6 40 Sales 14 Variable 26/40=65% 26 Contribution Margin 150000/.65=300000 Break Even Sales 150000/26=7500 Break Even Units Yes. I would recommend the change. The costs are less to break even. The profits ts will be maximized. I think we need the lowest break even possible in this situation....
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- Winter '08