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9. The Rosie Cotton Toy Company manufactures its own products, as well as buying products from other manufactures for sale in its own stores. a.
9. The Rosie Cotton Toy Company manufactures its own products, as well as buying products from other manufactures for sale in its own stores. a. The Company produces plush dragon stuffies. Each stuffed dragon sells for $9.95 with a Unit Variable Cost of $6.93. Assuming a Fixed Cost for the dragons of $11,400 what is the toy company's breakeven point? [2 marks] Break Even Point: b. Rosie manufactures a Baby Gollum stuffed figure that has a Contribution Margin of $4.68. Total Fixed Costs related to the production of the toy amount to $18,500.00 per month. Determine the minimum number of units that would need to be sold per month such that the Company receives a Net Income on this stuffed figure of at least $5,000.00. [2 marks] Number of Units:c. In a particular month, the Cotton Toy Company sells 11,347 Baby Gollum figures (from part b above) for a price of $19.99 each. Determine the Net Income for Baby Gollum sales. [1 mark] Net Income: d. A plastic brick construction toy provides $2.37 towards Total Fixed Costs and/or Profit on the sale of every box. If the Contribution Rate is 4.09%, what is the Selling Price? [2 marks] Selling Price
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