Question

Big Foot produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $1.20 per package. Each package sells for $2.00.
Requirements
1. Compute the contribution margin per package and the contribution margin ratio.
2. Find the break-even point in units and in dollars using the contribution margin shortcut approaches.
3. Find the number of packages Big Foot needs to sell to earn a $25,000 operating income.


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  • CreatedApril 30, 2015
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