Question
9. Manufacturers Selling price = $750, VC = $310, Total FC = $16,068,800 a. What is the contribution per unit? What is the contribution margin
9. Manufacturers Selling price = $750, VC = $310, Total FC = $16,068,800
a. What is the contribution per unit? What is the contribution margin percentage?
b. How may units must be produced and sold to break even? What is the breakeven point in sales dollars?
c. If you want a profit to equal 15% of sale, how many units must be produced and sold to achieve this target return? What sales revenue must be generated?
d. A retail chain buys directly from this manufacturer (no wholesaler) and uses a 30% markup on its cost in order to price its products. What is the retail price?
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