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What is the contribution to profit

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Reference no: EM133014941

QUESTION 1 - Suppose Farmer John purchases an additional facility for $2 million in the current operating period in order to expand his pig enterprise. If variable costs are 88.34% of pig sales, what is the breakeven sales required to not operate at a loss?

QUESTION 2 - Continuing from the previous question, suppose Farmer John's actual pig sales were $18 million; what is the contribution to profit of the newly purchased facility?

Reference no: EM133014941

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