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Snowboard Company is a manufacturer of one model of snowboard. Their current revenues and costs are based on the following information (the base case, copied

  1. Snowboard Company is a manufacturer of one model of snowboard. Their current revenues and costs are based on the following information (the base case, copied from Figure 6.6 in the text). Assume the unit sales price decreases by 10 percent from the base case. (6.3)

Base Case

Sales price per unit

$250

Variable cost per unit

$150

Monthly fixed costs

$50,000

Volume of sales

700

  1. What is the contribution margin
  2. Calculate the new projected profit.
  3. Calculate the dollar change in profit from the base case.
  4. Calculate the percent change in profit from the base case.

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