Business, 12.03.2020 00:42 donbright100
Tommy’s Tile Service is planning on purchasing new tile cleaning equipment that will improve their ability to remove tough stains from ceramic tiles. The company’s contribution margin is 25% and its current break-even point is $487,200 in sales revenue. Purchasing the new equipment will increase fixed costs by $11,000. Required: 1. Determine the company’s current fixed costs. 2. Determine the company’s new break-even point in sales. 3. After the purchase of the equipment, how much revenue does the company need to generate a profit of $135,000?
Answers: 2
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