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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This note was uploaded on 12/07/2011 for the course ACC 400 STBSBA73 taught by Professor Gilbertrodriguez during the Summer '09 term at University of Phoenix.

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