00 variablecostsat40 contributionmargin fixedcosts

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Unformatted text preview: tincome $105,000  R ­‑0.40R ­‑$450,000 =  1 − 0.30  0.60R = $450,000+$150,000  R = $600,000÷0.60  R = $1,000,000    Proof: Revenues $1,000,000   Variablecosts(at40%) 400,000   Contributionmargin 600,000   Fixedcosts 450,000   Operatingincome 150,000   Incometaxes(at30%) 45,000   Netincome $105,000  2.a. Customersneededtoearnnetincomeof$105,000:  Total revenues ÷ Sales check per customer: $1,000,000 ÷ $8 = 125,000 customers  b. Customersneededtobreakeven:  Contributionmarginpercustomer=$8.00 ­‑$3.20=$4.80  Breakevennumberofcustomers = Fixed costs ÷ Contribution margin per customer       =$450,000÷$4.80percustomer       =93,750customers  3. Usingtheshortcutapproach:  Unit ȹ ȹ Changein ȹ ȹ ȹ...
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This document was uploaded on 02/04/2014.

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