Question
Ollivander's wand maker company forecasts that he can sell 22000 wands for $2,120,000 to the wizarding world. The expected contribution margin is 60%. Fixed costs
Ollivander's wand maker company forecasts that he can sell 22000 wands for $2,120,000 to the wizarding world. The expected contribution margin is 60%. Fixed costs are estimated to be $576,000.
a) what is the selling price per unit? b) calculate the contribution margin is 22000 wands are made and sold c) calculate the contribution margin per unit d) if Ollivander decides to sell his wands in the open market, determine the break-even units e) determine the operating income if 30000 wands are made and sold f) determine the amount of revenue that needs to be generated to yield an operating income of $105,000
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