Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Lesson 9 Assignment

Lesson 9 Assignment

Q Read You Be the Consultant: “Where Do We Break-even?” (page 506) Calculate Anita’s break-even point without the expansion plans. Draw a break-even chart. Compute the break-even point, assuming that Anita decides to expand her business Do you recommend that Anita expand her business? Explain. Write a summary of at least 300 words using the discussion questions to guide your essay written in APA style, with a reference page and a cover page. APA requires double space. Your essay will be checked for originality via Safe Assign. There is not a target for matching but your instructor will be assessing that you have used your own words with proper in-text citations and quotation marks for direct quotes.

Q 1. Calculating the contribution margin at first,

View Related Questions

Solution Preview

Variable cost = $337, 000+$42,750 = $379,750 Sales are provided at $495,000 Variable cost as a percentage of sales = $379,750/495,000 = .77 Contribution margin is = 1.0- .77 = 0.23 After that, there will be a calculation of the breakeven sales dollar amount: Break Even sales in $ = Total Fixed Costs/ Contribution Margin Total Fixed cost= $78,100 Contribution margin = 0.23 Break Even sales in $ = $78,100/ 0.23 Break Even sales in $ = $339,565