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Chapter 5 Discussion 2

Chapter 5 Discussion 2

Q The goal of this discussion is for students to share and work on a problem of their choice so that the chapter concepts can be broadened. Discussion Question Requirements: 1. Locate the exercises at the end of Chapter 5. 2. Complete one of the Chapter 5 exercises of your choice no later than Thursday by 11:59 pm EST. Please show your work. o If the Thursday by 11:59 pm EST is missed, you will still be required to provide the initial post to participate in peer discussion and earn partial credit for the assignment. 3. Students will not be able to see peers' postings before posting their initial post. Once you make your initial post, you are not permitted to edit. If edits are needed, you will need to reply to the original post and make the corrections there. 4. Pick one peer’s post and review it. Then comment in no less than one paragraph why you found the information helpful, informative, etc. no later than Sunday by 11:59 pm EST. You must present new ideas and/or thoughts, merely stating that you agree/disagree is not enough to earn full points. 5. A paragraph is considered a minimum of 4-6 sentences. 6. Cite all sources - you must provide the exact link to the reference. Please keep in mind that citing sources does not mean you can copy and paste information from the source and use it as your own. You also cannot only change a few words from a source; all work must be in your own words. If copying/pasting is found or the submission is not in your own words, you will receive a zero, with no exceptions. This also includes commenting on peers' posts. 7. Use tables, if needed to make your posts directly into the discussion area. Do not post as an attachment.

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Barney Company makes and sells stuffed animals. One product, Michael Bears, sells for $28 per bear. Michael Bears have fixed costs of $100,000 per month and a variable cost of $12per bear. How many Michael Bears must be produced and sold each month to break even? The break-even point is that level of operations at which a company realizes no net income or loss. Two things are needed to find the break-even point: Contribution Margin per unit and Contribution Margin RATIO. These formulas are: Contribution Margin per unit = Sales Price – Variable Cost per Unit Contribution Margin Ratio = Contribution margin (Sales – Variable Cost) /Sales