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# Break-Even - 20,000 = 5.0 DOL 25,000 25,000(\$5 \$125,000...

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Break-Even Analysis FIN 200 a) 16,000 = 80,000 = \$80,000 5 \$10-(\$0.10 x 50) b) Sales @ \$10 per box \$120,000 \$250,000 Variables cost 60,000 125,000 Fixed cost 80,000 80,000 Profit or loss 20,000 45,000 c) Leverage went down because there are further absent beginning of the break-even point; consequently the company is operating on a bigger profit base which leverage is reduced. DOL 20,000 20,000 (\$5) \$100,000 20,000(\$5)-\$80,000
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Unformatted text preview: 20,000 = 5.0 DOL 25,000 25,000 (\$5) \$125,000 25,000 (\$5)-\$80,000 = \$45,000 = 2.78 d) DFL 25,000 \$45,000 \$ 45,000 \$45,000-\$10,000 = \$ 35,000 =1.29 DFL 20,000 20,000 \$20,000 \$20,000-\$10,000 = \$10,000 = 2.0 Sales @ \$10 per box \$200,000 Variables cost \$5 100,000 Fixed cost 80,000 Profit or loss 20,000 e) 20,000(\$10-\$5) \$100,000 20,000(\$10-\$5)-\$80,000-10,000 = \$10,000 =10.0...
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