Kim sells a small magazine full of motivational quotes to runners of all ages for $2.00 per copy. Hiring the printing press for one day, the only fixed cost is $300 an issue. The variable cost of printing each issue is $1.00 per copy. Kim is earning a profit of $500 per issue. How many copies per issue (units) is Kim selling?

What is the contribution per unit?

If Kim increases her desired profit to $1,000 per issue, how many copies will Kim need to sell?

How many units must Kim sell to break even?

David sells decorative stone garden statues, his annual Fixed Costs are $1,000 and the Variable Costs are $50 per statue. The Market Size for the garden statues in his area is 2,000 statues, and David wants to achieve a Market Share of 4%. At a price of $70 a statue, what is the unit contribution ($) per statue sold?

How many statues must David sell to break even?

If David wants to achieve a profit of $1,000, how many statues must David sell?

Poppys bakes and sells muffins. The company is conducting a price test to find a better price point. Presently their muffins sell for $20 per dozen. Their current volume is 1,000 dozen per month. They are considering reducing their sales price by 10% per dozen. If Poppys variable costs are $10 per dozen, what is their contribution per unit at current prices?

Will Poppys break even with fixed costs equal to $1,500?

How many dozens does Poppys need to sell to generate $1,000 in profit?