a. Calculate the contribution margin per brownie for the brownies sold in the local shops. b. Calculate

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a. Calculate the contribution margin per brownie for the brownies sold in the local shops.
b. Calculate the contribution margin per brownie for the brownie s requested by the school principal.
c. If the principal can pay no more than $0.80 per brownie, should BB take the order? Why?
d. Would your decision change if the workers did not have any spare capacity and had to give up normal sales of brownies to accept the principal's order.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Accounting Business Reporting For Decision Making

ISBN: 9780730302414

4th Edition

Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver

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