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Question 13 (Q14) Rhetorix, Inc., produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $300 and
Question 13 (Q14)
Rhetorix, Inc., produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $300 and the fixed cost per month is $49,000.
- Calculate the contribution margin associated with a pair of speakers.
- In August, the company sold eight more pairs of speakers than planned. What is the expected effect
on profit of selling the additional speakers?
- Calculate the contribution margin ratio for Rhetorix associated with a pair of speakers.
- In October, the company had sales that were $10,000 higher than planned. What is the expected
effect on profit related to the additional sales?
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