Question
Q. a company that specializes in the production of boxing gloves. These can be sold at a unit price of $ 35. However, the fixed
Q.
a company that specializes in the production of boxing gloves. These can be sold at a unit price of $ 35. However, the fixed and variable costs must be taken into account. The fixed costs amount to $ 60,000, while the variable costs include direct labor ($ 10 / unit), raw material ($ 8 / unit), and delivery ($ 2 / unit). A. First, calculate the variable costs per unit. B. Identify the profitability rate by the volume formula. C. What is the net profit generated by 5000 units? D. Still at 5000 units, what would be the profitability ratio of the net margin?
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