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3c. The answers to requirements 3a and 3b decrease the breakeven point relative to that in requirement 2 because in each case fixed costs remain the same at $3,500,000 while the contribution margin per unit increases. 3-24 (10 min.) CVP analysis, margin of safety. 1. Breakeven point revenues = Contribution margin percentage = = 0.40 or 40%. 2. ................
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