1) Chupacabra is a donut making company. The accountant at Chupacabra developed the following cost and price estimates: Price per donut, $2; variable cost per donut $1.5; fixed costs per month, $1,000.

a. The revenue to break even per month is:

b. The number of units needed to break even per month is:

c. The contribution margin at a volume of 6,000 donuts is:

d. Chupacabra wants a profit of $1,000 per month; how many donuts must it sell?

2) Chupacabra is a donut making company. The accountant at Chupacabra developed the following cost and price estimates: Price per donut, $2; variable cost per donut $1.5; fixed costs per month of $1,000 AND a tax rate of 40%.

a. Chupacabra wants a profit after taxes of $1,000 per month; how many donuts must it sell?