Question
Consider the following data for Amazon: Selling price per unit: $50 Variable cost per unit: $30 Fixed costs: $200,000 i) Calculate the contribution margin per
Consider the following data for Amazon:
- Selling price per unit: $50
- Variable cost per unit: $30
- Fixed costs: $200,000
i) Calculate the contribution margin per unit.
ii) Determine the break-even point in units.
iii) Calculate the break-even point in sales dollars.
iv) If Amazon wants to achieve a profit of $100,000, how many units must it sell?
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Financial Accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
10th edition
978-1119298229, 1119298229, 978-1119305828, 1119305829, 978-1119305736
