Question 3 sr garca needs to prepare a contribution

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Unformatted text preview: •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Answer: Again, we can begin with the basic formula, insert the known elements, and solve for the unknown. px 1.80x . 96x x = = = = a + bx (100,000 + 2,000) + (.80x + .04x ) 102,000 106,250 Breakeven is 106,250 magazines. ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• CVP Analysis with Step-Function Costs The introduction of step-function costs is somewhat more difficult than might first be imagined. Ideally, for any given relevant range, we would simply add toget...
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This document was uploaded on 03/30/2014.

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