Question
ANSWER #5 not #4 4) The Handy Doll Manufacturing Company has the following information. The average doll sales price is $12.00, raw materials for a
ANSWER #5 not #4 4) The Handy Doll Manufacturing Company has the following information. The average doll sales price is $12.00, raw materials for a doll are $4, and it takes 15 minutes to assemble a doll. Production labor is paid $8.00 per hour. Operating expenses are as follows: salaries, $2,500 per week; insurance, $1,200 per quarter; rent, $1,500 per month; and utilities, $800 per month. How many dolls must be sold per month to break even? How many dollars in sales does this represent? What is the contribution margin for each doll sold? Hint: See the problem in the chapter. Also when converting the weekly cost to a month multiple it by (52/12) not 4. There are 52 weeks in a year not 48. 5) For the company in question 4, if the goal is to make a profit of $5,000 per month, how many dolls must be sold?
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