BU247 Lecture Notes - Fixed Cost, Variable Cost, Contribution Margin

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20 Jan 2014
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Profit = tr tc (variable and fixed) Profit = (sp-vc) x units - fixed cost. Selling price, variable cost would remain the same over all levels of production. Fixed costs remain the same over all levels of production. Explain whether this change will cause klear"s breakeven point to increase or decrease, compared to the initial plan. *if the breakeven point was 7778. 25 it would be rounded up. Problem 2 -27 morton medical institutes: how much will the hospital need to charge per patient day to break even at this level of activity, refer to the original data in the problem. Profit = revenue x units variable costs x units fixed costs. 0= 5400*x 700 000 000 000. 5400x $ 4 700 000 = 700 000/5400= . 37: target profit calculation. 045 000 = x - 045 000/1500 = 1363. 33 days or 1364 days. Wood to make the shelves ( 000/50 000)

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