Question
A soccer ball manufacturer provided the following information Factory Overhead $250,000 Soccer Ball $0.50 per ball Direct Labour $0.10 per ball Sales Personnel Commissions 20%
A soccer ball manufacturer provided the following information
Factory Overhead $250,000 Soccer Ball $0.50 per ball Direct Labour $0.10 per ball Sales Personnel Commissions 20% of Selling Price Advertising $150,000 Managerial & Administrative Salaries $400,000 Selling Price $1.70 per ball Design $0.30 per ball Total available bottle market is 5 million soccer balls (near this selling price) Using this information, calculate: a. Unit contribution b. Breakeven volume (in number of bottles) c. Market share required to breakeven d. Total profit for the company if three million bottles are sold e. Number of belts that need to be sold to generate $1.06M in profit
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