Overview
If the following information is given about a specific company.
Selling price unit: $43.25
Fixed Expenses
Selling and Administration: $57,440
Interest Expenses: $14,250
Variable Expenses:
Cost of goods Sold: $27.35
Selling and Administrative: $7.29
- What is the company’s contribution margin? What does it mean?
- How many items the company must sell in order to break even? What is it in dollars term?
- At the end of the month, instead of breaking even, the company registered a net loss of $22,345, what number of units were sold?
- At the end of the month, instead of breaking even, the company registered a net profit amounting to 30% of its total fixes expenses, what number of units were sold?