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1) Floyd BBQ Company makes BBQs. In the last year it has sold 400BBQs at a sales price of $450 each. It has Fixed Expenses
1) Floyd BBQ Company makes BBQs. In the last year it has sold 400BBQs at a sales price of $450 each. It has Fixed Expenses of $60,000. It has Variable Expenses of $250 per BBQ sold. a) Calculate the total contribution margin of this company in dollars for the year. (3 Marks) b) Calculate the total contribution margin of this company per unit. (3 Marks) c) Calculate the contribution margin ratio and interpret what this means. (3 Marks) d) How many sales in units of BBQs are required for the company to break-even? (3 Marks) e) The company has decided to increase the advertising budget by $9,000. Because of this it is expected that the number of BBQs sold will increase from the current 400 units to 450 units. Calculate the impact that this will have on profit
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