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Davis Inc. produces the golf rangefinder. The following cost information pertains to this new devise: Package and golf rangefinder (direct material and labor) $30/Unit Software
Davis Inc. produces the golf rangefinder. The following cost information pertains to this new devise:
Package and golf rangefinder (direct material and labor) | $30/Unit |
Software (program installed) | $20/Unit |
Advertising and promotion | $300,000 |
Davis Inc.s overhead | $250,000 |
Selling price to distributors | $150 |
Calculate the following:
- Unit contribution (= gross margin per unit, $/Unit)
- Break-even volume in units and dollars
- Net profit if 10,000 units are sold
- Necessary unit volume to achieve a $200,000 profit
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