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There is a retail store selling DVDs. This business is relatively simple with approximately the same contribution margin percentage for all products.
1. List all variable costs for the business and estimate and estimate each variable cost per unit
2. List all the fixed costs for the business per month what each of the costs might be per month
3. Given the fixed and variable costs that have been identified, compute the break-even point for your business in either units or dollar sales.
4. Assess the prospects of your business making a profit.
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