What is the break-even level of output? b.) If the firm sells 1300 units what are its earnings or losses? c.) If sales rise to 2,300 units, what are the firm's earnings or losses?

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Q: Company XYZ is currently making sales of $200,000 . At this level , the variable expenses were…

A: Contribution margin  = sales - variable costs = $200000 - 40000 = $160000

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A: margin = net income / sales*100   margin=  $81,700/$950,000*100 =8.6%

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