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Company X produces a desk for sale to universities. A single desk requires $50 in raw materials and $25 in direct labor to be made.
Company X produces a desk for sale to universities. A single desk requires $50 in raw materials and $25 in direct labor to be made. These units are sold for $200. Company X has invested $100,000 in equipment and pays $1,000 monthly to rent a facility to produce these units. a. What is the unit contribution for Company X's product? b. What are the fixed costs for Company X for Year 1 (i.e. 12 months of rent plus initial investment in equipment?) c. How many desks must Company X sell to reach breakeven in Year 1 ? d. Company X's founder hopes to make a profit of $50,000 in Year 1. How many desks must she sell to achieve this goal
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