Question
The Robinson Company sells sports decals that can be personalized with a players name, a team name, and a jersey number for $7 each. Robinson
The Robinson Company sells sports decals that can be personalized with a players name, a team name, and a jersey number for $7 each. Robinson buys the decals from a supplier for $2.10 each and spends an additional $0.70 in variable operating costs per decal. The results of last months operations are as follows:
Sales revenue | $13,300 | |
Cost of goods sold | 3,990 | |
Gross profit | 9,310 | |
Operating expenses | 2,700 | |
Operating income | $6,610 |
Calculate contribution margin per unit. (Round answer to 2 decimal places, e.g. 0.38.)
Contribution margin per unit = $4.20 |
What is Robinsons monthly breakeven point in units? In dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 25,000.)
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