Solution-Calculate both the break-even revenue and sales

Calculate both the break-even revenue and sales volume

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Reference no: EM132568957

Arnold Brothers Corporation (ABC Corp) sold 2,200 zippers in 2020 for $6 apiece. Arnold buys the zippers for $2 each and it costs $1 to paint each zipper yellow and add a snazzy logo. Arnold paid $200 a month to rent a sales booth at his local outdoor market, along with a sales commission of $1 per zipper sold (his sister made all the sales on commission). Develop ABC Corp's contribution income statement.

Question 1: Arnold is wondering what his break-even point is. Calculate both the break-even revenue and sales volume.

Question 2: Next year, Arnold is planning to sell 3,000 zippers. What will be his margin of safety?

Question 3: Make Cost-Volume-Profit graph for ABC Corp. Label the axes, lines, loss and profit areas, and break-even point clearly on your graph.

Reference no: EM132568957

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Calculate both the break-even revenue and sales volume

Reference no: EM132568957

Reference no: EM132568957

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