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Y2K, Inc. located in the U.S.A. purchases 4,000 widgets monthly from XYZ, LLC located in Wales. The terms are FOB Wales. Widgets are shipped by
Y2K, Inc. located in the U.S.A. purchases 4,000 widgets monthly from XYZ, LLC located in Wales. The terms are FOB Wales. Widgets are shipped by ocean freight, and arrive on the first of the following month in the U.S.A. Each widget has an FOB price of $108, with Total Landed Costs of $12.50 per widget. Y2K, Inc. has a contribution margin of 68% and a gross margin of 45%. The following are the monthly sales in units:
- January 2022: 1,800
- February 2022: 2,100
- March 2022: 2,500
- Sales price of a widget
- Revenue in $ for each month (assume no returns or discounts)
- Contribution Margin in $ for each month
- Gross Margin in $ for each month
- COGS/COS in $ for each month
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