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Essay Details:
Essay text:
a.) Unit contribution and contribution margin:
$20 ? 4.00 - .50 - .50 = $15 unit contribution
$15 / 20 = 75 % contribution margin
b.) Break-even point in units? In dollars?
$15 (x) ? 125,000 ? 5,000 ? 10,000 ? 35,000 = 0
11,667 units are needed
11,667 * $20 = $233,340 dollars needed
c.) What share of the market is needed to earn a 20% return on investment?
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3.
4. a.) Selling to wholesalers at 10% off the selling price
10% * .50 = .05
so it will be sold to wholesalers at $.45 per can
b.) Contribution per unit
$.50 - .18 - .06 = $.26 per unit
c.) Break-even unit volume per unit
$...
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