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Your company has the following expenses this year: Rent $ 600./month Your company makes only one product: Insurance $ 2000./year Utilities $ 150./month Product Sale
Your company has the following expenses this year:
Rent $ 600./month Your company makes only one product:
Insurance $ 2000./year
Utilities $ 150./month Product Sale Price $ 100.
Advertising $ 1000./year Product Cost $ 80.
If this company sells one unit beyond breakeven How much profit does the company make?
What is this companys Contribution Margin Ratio on this one product?
Calculate the Companys total sales revenue at Breakeven.
What happens to the breakeven (BE) point if expenses increase by 10%?
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