Refer to original data. Creative Wood is considering adding a retail outlet. This will increase common fixed

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Refer to original data. Creative Wood is considering adding a retail outlet. This will increase common fixed cost by P70,000 per year. As a result of adding the retail outlet, the additional publicity and emphasis on quality will allow the firm to change the sales mix to 1:1. The retail outlet is also expected to increase sales by 30%. Assume that the outlet is opened at the beginning of the sixth month. Calculate the effect on the company's expected profits for the current year, and calculate the new one break-even point. Assume that fixed costs are incurred uniformly throughout the year

Posted Date: May 13, 2024 06:01 AM

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Refer to original data. Creative Wood is considering adding a retail outlet. This will increase common fixed

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Original data Sales 240000 Variable cost 60 of sales 06 240000 144000 Fixed costs 120000 Profit Sale... View the full answer

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