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What is the breakeven sales required to not operate at loss

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Question - Suppose Farmer Ed purchases an additional facility for $3 million in the current operating period in order to expand his pig enterprise. If variable costs are 90% of pig sales, what is the breakeven sales required to not operate at a loss?

Continuing from the previous question, suppose Farmer Ed's actual pig sales were $90 million; what is the contribution to profit of the newly purchased facility?

Reference no: EM133049430

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