SOLUTION: a) Compute CM per unit and CM ratio. b) Compute the number of car ABC Motors should sell each year for BEP and BEP in birr, using: i) equation method; ii) contribution margin meth

Question 1066067: a) Compute CM per unit and CM ratio.
b) Compute the number of car ABC Motors should sell each year for BEP and BEP in birr, using: i) equation method; ii) contribution margin method; and iii) graphic method.
c) Compute the number of car ABC Motors required to sell to earn operating income of Br. 180,000 during the each year using: i) equation method; and ii) contribution margin method.
d) The manager of ABC Motors Company expects that a Br. 20,000 increase in the yearly advertising budget would increase yearly sales by Br. 300,000. Should the increase in advertising budget be made?

Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
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My impression is that the person who submitted this post does not know and does not understand what he is doing.

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