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The selling price is 17.50 per unit, the variable cost per unit is 13.00. The monthly fixed cost is 54,000 and this includes salaries for
The selling price is 17.50 per unit, the variable cost per unit is 13.00. The monthly fixed cost is 54,000 and this includes salaries for 5 managers at 1,500 pcm for each manager. a) What is the contribution per unit? b) What is the monthly breakeven quantity? c) The predicted sales volume is 14,000 units pcm. What is the profit at this level? d) At present there are 5 managers. What would the monthly breakeven quantity be if they could cope with 3 managers rather than 5
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