Question
Gotcha Covered Manufactures and sells leather cases for cell phones. Each Case sells for $80. Variable Manufacturing cost are $30 per case. We pay a
Gotcha Covered Manufactures and sells leather cases for cell phones. Each Case sells for $80. Variable Manufacturing cost are $30 per case. We pay a sales commission of 10% of the selling price to our salespeople. Fixed manufacturing costs are $200,000 and fixed operating costs are $35,000.
A. Calculate the Following Amounts:
i. V (variable cost per unit) and VC% (Variable cost percentage)
ii. CM ( Contribution margin per unit) and CM% ( Contribution Margin Percentage.
IV. Quantity
V. Target quantity if we want to generate Operating Income= $100,000
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