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Review Day Exercises SolutionsREVIEW DAY EXERCISESCVP RelationshipsXYZ Company’s break-even sales level for the year was $40,000. When the company incurs total variable costs of $50,000 and fixed costs of $30,000, what would the actual profit (loss) before taxes for the year be?Sales – VC = CM – FC = Profit before taxes$40,000 – VC = CM.
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