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The 2 budding entrepreneurs armed with grit and determination plus their never- say-die-can-do attitude, finally decided to pursue their life-long dream to be their own
The 2 budding entrepreneurs armed with grit and determination plus their never- say-die-can-do attitude, finally decided to pursue their life-long dream to be their own bosses. They decided to open an online store with a unique twist, a device which promised to let you focus in whatever you are doing. The cost of each device is comprised of the following: Selling price of $1,000 and variable (flexible) costs of $400. Total fixed (capacity-related) costs for the business would be $90,000. |
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(1) What is the contribution margin per device? (2) What is the total profit when 200 devices are sold? (3) How many devices must they sell to reach the breakeven point? (4) How many devices must they sell to yield a profit of $60,000? (5) Do you think there is such as a device-to-let-you-focus? |
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