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Gerhard plans to make and sell ball caps at the Blue Jay's game. Expected sales Selling price Direct material Direct labour Variable overhead Variable
Gerhard plans to make and sell ball caps at the Blue Jay's game. Expected sales Selling price Direct material Direct labour Variable overhead Variable selling commission Fixed sell. & admin. expense Fixed factory overhead 5,000 $20 $8 $4 $2 $1 $800 $800 units What is the total fixed costs? per cap per cap per cap per cap per cap total Using the above information answer the following questions. total What is the total variable cost per unit? What is the variable cost ratio? What is the contribution margin per unit? A What is the contribution margin ratio? HINT: Remember the entry rules for percentages. A What is the break-even number of ball caps? What is the break-even in sales dollars? A/ HINT: Remember the entry rules for percentages. A The company would like to earn a target income of $4,000. How many ball caps will the company have to sell in order to earn this target income? The company would like to earn a target income of $4,000. The total sales revenue required to earn an income this target income is $___ A
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