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Problem 14-10 Cranberry Wood Products Inc. spends an average of $10.50 in labor and $12.00 in materials on every unit it sells. Sales commissions and
Problem 14-10
Cranberry Wood Products Inc. spends an average of $10.50 in labor and $12.00 in materials on every unit it sells. Sales commissions and shipping amount to another $2.50. All other costs are fixed and add up to $146,000 per month. The average unit sells for $32.00.
- What is Cranberry's contribution? Round the answer to two decimal places. $ What is Cranberry's contribution margin? Round the answer to two decimal places. %
- What is the firm's breakeven point in units? Round the answer to the nearest whole number. units
- Calculate the dollar breakeven point. Do not round intermediate calculations. Round the answer to the nearest whole dollar. $
- Sketch the breakeven diagram.
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