Asked by Gabrielle D'Andrea on Jul 17, 2024

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At a 20 percent gross margin,for every $1 increase in fixed costs (e.g. ,insurance,salaries,rent,and utilities),by how many dollars do sales need to increase just to stay even?

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  • Calculate the increase in sales needed to cover an increase in fixed costs, maintaining current gross margin.
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PHUONG BUI THUJul 21, 2024
Final Answer :
At a 20 percent gross margin,for every $1 increase in fixed costs,sales need to increase by five dollars just to stay even.