Calculate the break-even value per month during the first six months of operations. INFORMATIONAn entrepreneur recently opened a filling station. Diesel is sold at R15 per liter and the variable costs totalR12 per liter. The fixed costs per month are R270 000. After six months of trading, the sales achievedwere 1080 000 liters and the sales volume has remained at the same level each month. In an attempt toimprove performance, the entrepreneur is considering the following proposals:REQUIREDStudy the information provided below and answer each of the following questions independently:Calculate the break-even value per month during the first six months of operations.

=15-12= 3 Now find the contribution margin C/S = 3/15= 0.20=20%

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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