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Unformatted text preview: 3. What other factors should the owner consider before making the final decision to purchase the machine? The owner should weigh factors such as expanding the specialty juices and mixes and opening on weekends; as an attempt to compete with other juice chains. When the contribution margin is higher the break even sales is lower; this allows the owner to make profit faster. So purchasing a machine with fewer problems will lower their variable cost, which will allow his business to turn a profit sooner....
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- Spring '11
- Managerial Accounting