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2) Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total
2) Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. (10 Marks)
Required:
- What is the contribution margin per phone?
- What is the break-even point in phones?
- How many phones must be sold to earn pre-tax income of $7,500?
please answer it using word or excel thank you
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