Question
The Company sells the average unit widget for $82.35, and the company spends an average of $12.60 in labor and $17.75 in materials on every
The Company sells the average unit widget for $82.35, and the company spends an average of $12.60 in labor and $17.75 in materials on every unit it sells. Sales commissions and shipping amounts to another $8.20. All other costs are fixed and add up to $9,130 per month.
a. (3 pts) What is the Companys contribution?
b. (3 pts) What is the Companys contribution margin?
c. (3 pts) What is the Companys breakeven point in units?
d. (3 pts) What is the dollar breakeven point?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
