Question
Home Solutions manufactures internet-connected doorbells and sells them to intermediaries in the channel of distribution for $55. Each doorbell costs Home Solutions $15 to
Home Solutions manufactures internet-connected doorbells and sells them to intermediaries in the channel of distribution for $55. Each doorbell costs Home Solutions $15 to manufacture in addition to $550,000 in fixed costs. Calculate the following: a. contribution per unit and contribution margin percentage b. break-even volume in units and dollars c. unit volume and dollar sales necessary if Home Solution's profit goal is $3 million d. unit volume and dollar sales necessary if Home Solution's profit goal is 10% profit on sales
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