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Calculate the contribution margin at expected sales volume

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Reference no: EM132847063

Question - Angelica and Tommy expected 10000 tapes would be hired out in the first year. However they have not yet decided which plan should be adopted because each plan has its positive and negative points.

Required -

a) Calculate the break even quantity and dollar amount for both plans?

b) Calculate the contribution margin at the expected sales volume.

c) Explain the contribution margin calculated above whether or not be able to cover the fixed costs.

Reference no: EM132847063

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