Linear Equations And Inequalities Worksheet With Answers Page 26
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28Break-even Analysis
Assume that the financial statements for Lillian's Bakery
reveal that the bakery's fixed costs are $49,000, and its
variable costs per unit of production (loaf of raisin coffee
cake) are $.30.
Further assume that its sales revenue is $1.00 per loaf.
From this information, it can be determined that, after the
$.30 per loaf variable costs are covered, each loaf sold
can contribute $.70 toward covering fixed costs.
26
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