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Fixed cost and break even Analysis for Jane Di's wholesale

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Jane Di is planning on opening a new wholesaling operation. Her target operating margin will be 48 percent of sales. Average annual sales are forcasted to be $3,550,000.

a. How large can fixed cost be for the wholesaling operating and still allow the 29 percentage operating profit margin to be achieved?

b. What is the break-even point in dollars for the firm?

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Solution Summary

Shows and conducts CVP analysis for Jane Di's newly started wholesale operations.

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