Break-Even Point Calculations
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1) Mary Clark, a recent graduate of Clarion South University, is planning to open a new wholesaling operation. Her target operating profit margin is 26 percent. Her unit contribution margin will be 50 percent of sales. Average annual sales are forecast to be 3,250,000.
a. How large can fixed cost be for the wholesaling operation and still allow the 26 percent operating profit margin to be achieved?
b. What is the break-even point in dollars for that firm?
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This solution is comprised of a detailed explanation and calculation to find the break-even point in dollars for the firm.
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a. How large can fixed cost be for the wholesaling operation and still allow the 26 percent operating ...
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