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3. Calculate breakeven in dollars for 2007. (Hint: You will need the information from previous requirements.) BEP = Total fixed cost/Total P/V ratio Total P/V ratio = Total contribution/Total sales ¯Æ’¨ $8,300,000/$36,200,000 ¯Æ’¨ 22.93% Total fixed cost = $6,500,000 Break-even in dollars = $6,500,000/22.93% ¯Æ’¨ 28,349,398 Please note: The P/V ratio is taken un-rounded for the above calculation. The unrounded ratio is 22.928176795%

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