1. The Lollygag Lollipop Company has the following costs. Variable costs per lollipop: $0.30, Total fixed costs (annual): $60,000 (for 300,000 units) Assume the Lollygag Lollipop wants to earn 40% markup on sales, what is the markup price or retail price? What is the break-even point?
2. Pizza Store sells each pizza (one size) for $10. The average variable cost for each pizza is $4. The total month fixed costs $3,000. What is the break-even point in units? Break-even Point in sales?
3. Dewalt, the manufacturer, has a cost of $45 per drill and a profit of $19 per drill. What is Dewalts gross margin for the drill?