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Nike produces sports shoes and has the following cost structure: Selling Price per Pair: $100 Variable Cost per Pair: $60 Fixed Costs: $2,000,000 Nike sold
Nike produces sports shoes and has the following cost structure:
- Selling Price per Pair: $100
- Variable Cost per Pair: $60
- Fixed Costs: $2,000,000
Nike sold 80,000 pairs of shoes last year.
Requirements:
- Calculate the Contribution Margin per unit.
- Determine the Break-Even Point in units and sales dollars.
- Calculate the Margin of Safety in units and sales dollars.
- Prepare a Cost-Volume-Profit (CVP) graph for Nike.
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