The following information is taken from the 2017 records of Hendrix's Guitar Center.
Contribution Margin Concepts
The following information is taken from the 2017 records of Hendrix's Guitar Center.
Required
(a.) Determine the annual break-even dollar sales volume
(b.) Determine the current margin of safety in dollars.
(c.) Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maximum values of $ 1,000,000. Draw a vertical line on the graph for the current $750,000 sales level, and label total variable costs, total fixed costs, and total profits at $ 75,000 sales.
(d.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $ 35,000?
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The following information is taken from the 2017 records of Hendrix's Guitar Center.
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