Question
Lamar has the following information Selling Price $40 Variable manufacturing cost $22 Fixed manufacturing cost $150,000 per month Variable selling & administrative costs $6 Fixed
Lamar has the following information
Selling Price $40
Variable manufacturing cost $22
Fixed manufacturing cost $150,000 per month
Variable selling & administrative costs $6
Fixed selling & administrative costs $120,000 per month
___________________________ 5. what is the contribution margin in dollars?
___________________________ 6. How much in sales dollars is required to generate an operating profit of $30,000?
___________________________7. what is the contribution margin ratio?
___________________________ 8. How much in units is required to generate an operating profit of $24,000 after tax ( tax rate 20%)
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