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Steve is opening a small wood shop to build custom mailboxes. He has the following costs:
Fixed cost: $3,000 a month
Wages for two assistants who work 40 hours a week,
40 weeks a year earning $12 an hour
Material: $10 per box
Handling: $1.00 per box

If he sells his boxes at $30 each, calculate the shop's:
(a) Contribution margin

(b) Break-even quantity

(d) Break-even quantity and revenue if he wants to make $5,000 in profit
Also draw the break-even graph.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92061769

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