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Question:
Le Bistro makes more than one product and would like to know its break-even point (price). Monthly fixed cost is estimated at $3,500 and management has gathered the following data:
a) Determine the break-even point (price). Comment on the results
b) Assuming the company is open 6 days per week during 52 week, what would be the daily sales to achieve break-even?
c) Determine the number of sandwiches that need to be sold daily to achieve break-even
d) The Manager of the company wants an increase of $2,000 in his salary which is a fixed cost. What would be the new break-even point?
What are the different levels of diversification firms can purpsue by using different corporate level strategies and what are the advantages to diversifying their operations?
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