question 1

Lady's Gourmet Dog Food Company sold 28,000 cans of its only product, Venison Stew, in November at a sales price of $8 per can. The variable cost is $6 per unit. Fixed costs are $36,000. If Lady would like to earn a profit of $60,000 next month she will need to sell ____________ cans of her Venison Stew.

question 2

Vaughan, Inc. sells hand tye-dyed shirts for $40.00 per shirt. She incurs monthly fixed costs of $10,000. The contribution margin ratio is 20%. What is the variable cost per shirt?