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Once you have reformatted the two income statements into a contribution approach, calculate for each strategy the breakeven level and the operating...








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4- Added assignment to the CVP problem. Once you have reformatted the two income statements into a contribution approach, calculate for each strategy the breakeven level and the operating leverage. The two strategies are the use of an outside sales force with a commission and an internal sales force with fixed salaries and commissions.

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Contribution margin percentage= [(Sales- Total variable costs)/ Sales]x100% Using Sales Agents Contribution... View the full answer

2 comments
  • How about this dded assignment to the CVP problem. Once you have reformatted the two income statements into a contribution approach, calculate for each strategy the breakeven level and the operating leverage. The two strategies are the use of an outside sales force with a commission and an internal sales force with fixed salaries and commissions.
    • ConstableHippopotamus2521
    • Oct 01, 2018 at 6:55pm
  • .
    • ConstableHippopotamus2521
    • Oct 01, 2018 at 6:56pm

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