Question: Cost-Volume-Profit (CVP) Analysis at Etsy Values: Fixed Costs: $12,000,000 Variable Costs per Sale: $2 Average Revenue per Sale: $10 Number of Sales: 1,500,000 Requirements: Calculate

Cost-Volume-Profit (CVP) Analysis at Etsy

    • Values:
      • Fixed Costs: $12,000,000
      • Variable Costs per Sale: $2
      • Average Revenue per Sale: $10
      • Number of Sales: 1,500,000
  • Requirements:
    1. Calculate the total contribution margin.
    2. Determine the breakeven point in sales and revenue.
    3. Discuss the implications of CVP analysis for Etsy’s business model.
    4. Suggest strategies to enhance profitability.

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