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Wanda wants to open a Health Food Store. She will pay rent of $1,500 per month, utilities of $500, insurance of $100 per month, and payroll of $1,250. She estimates that her cost of goods will be approximately 65 percent of sales. Wanda would like to make $2,000 a month for herself. c) What is Wanda’s contribution margin? d) How much does she need in monthly sales to break even? e) How much does she need in monthly sales to make a profit of $2,000?
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