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Verdich [7]
2 years ago
14

The manager at Vertical Wire Productions reported total sales revenue of $800,000. The variable expenses were $600,000, and ther

e were $125,000 of total fixed expenses. Use the contribution margin shortcut formula to predict the breakeven point in dollars.
Business
1 answer:
Brilliant_brown [7]2 years ago
5 0

Answer:

BEP_{dollars} = 500,000

Explanation:

<u>The first step</u> will be  get the contribtuion margin:

Sales\: Revenue - Variable \:Cost = Contribution \:Margin

800,000 - 6000,000 = 200,000

This is the amount after variables cost used to pay the fixed cost and make a gain.

Second, we calcualte the contribution margin ratio

\frac{Contribution \:Margin}{Sales\: Revenue} = Contribution\: Margin\: Ratio

200,000/800,000 = 0.25

Per dollar of sales 25 cents are available to pay the fixed cost.

Now, we calculate the break even point in dollars

\frac{Fixed\:Cost}{Contribution\: Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{125,000}{.025} = 500,000

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D) He wants us to learn that having Him at the center of our lives will always be the best for us no matter how big or small the decisions we must face.

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The article exposes that dehumanization is part of the world we're living in today. Marguerite Shuster argues that the world we're living in today is Genesis 3 world.

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Shuster , M. (2013). The Mystery of Original Sin: We don’t know why God permitted the Fall, but we know all too well the evil and sin that still plague us. Christianity Today, 57(3), 38-41

Shuster, Marguerite. “Did God Plan the Fall?” ChristianityToday.com, Christianity Today, 24 Sept. 2018

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H&amp;M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional
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