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QUESTION 1 (25 Points): Intelligent Toys is a local company producing and retailing toys for children with special They have been in business for more
QUESTION 1 (25 Points): Intelligent Toys is a local company producing and retailing toys for children with special They have been in business for more than 15 years and since 2003 they have been produ using recycled wood and paper. They promote their products particularly in social media toy is sold for $150. It is relatively expensive toy because the production process is very intensive. An experienced craftsman spends four and a half hours to produce one unit of costs associated with the production of this toy are presented below: Web-site maintenance Insurance Recycled wood Recycled paper Labor cost Packaging Paint and polish Screws & nails $13/unit $10/unit $6/hour $3/unit $5/unit $2/unit Employee benefits $1800/year $250/week $450/quarter $2150/month $100/month $150/quarter Salaries Promotion activities Advertisement a. What is the contribution margin? b. How many toys must be sold each month in order to break even? c. What is the break-even dollars in sales amount? d. How many toys must be sold to earn a $36,000 profit each month? e. What is your total monthly revenue if you want to earn a profit of $15,350
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