Develop a break-even table showing the change in Profit Contribution for changes in sales between -5% and
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Question:
- Develop a break-even table showing the change in Profit Contribution for changes in sales between -5% and -30%. To you will need to determine first:
. What is the baseline "initial sales" from which you are beginning?
. From that baseline, how would you treat the semi-fixed costs?
. Are they additions to cost (positive numbers) or are they savings (negative numbers)?
. What does the column labeled "Change in Profit Contribution" mean here? What is it a change from?
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