Solve using the Contribution Margin approach Beta Inc has based its budget forecast for next year on the assumption it will operate at 90 of capacity The budget is a At what percentage of capacity would Beta break even b What would be Betas net income if it operates at 70 of capacity ...

To tackle this question lets first define what the Contribution Margin CM is The Contribution Margin is the difference between sales revenue and varia ...

Solve using the Contribution Margin approach. Beta Inc. has based its budget forecast for next year on

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Solve using the Contribution Margin approach.

Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is:

Sales revenue Fixed costs Total variable costs Total costs Net income $10,000,000 $6,000,000 $18,000,000

a. At what percentage of capacity would Beta break even?
b. What would be Beta’s net income if it operates at 70% of capacity?

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Solve using the Contribution Margin approach. Beta Inc. has based its budget forecast for next year on

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Business Mathematics In Canada

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