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Rachel runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is $600. Rach

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Answer #1

1)

(Fixed cost + Target profit) / Contribution Margin per unit = Breakeven units

($600 + $0) / $1.50 = 400 units

2)

(Fixed cost + Target profit) / Contribution Margin ratio = Breakeven sales

($600 + $0) / 75% = $800

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