1. You are going to open a business making custom cabinets. Using the data in the table,...
Question:
1. You are going to open a business making custom cabinets. Using the data in the table, provide answers to the questions below.
| Cabinet Selling Price | $ 84 |
| Time to Make One Cabinet | 30 minutes |
| Labor Cost per Hour | $ 18 |
| Raw material Cost per Cabinet | $ 28 |
| Fixed Costs | $ 5000 |
| Desired Profit per Month | $ 2000 |
What is your Contribution Margin? $--------- (two decimals)
Cabinets to be made per month to Break Even? ----------- ~ cabinets\month
Monthly Revenue needed to reach your desired profit? $---------- (two decimals)
2. You are going to open a business making custom skateboards. Using the data in the table, provide answers to the questions below.
| Skateboard Selling Price | $ 167 |
| Time to Make One Cabinet | 5 hours |
| Labor Cost per Hour | $ 27 |
| Raw material Cost per Skateboard | $ 17 |
| Fixed Costs | $ 18000 |
| Desired Profit per Month | $ 13000 |
What is your Contribution Margin? $---------- (two decimals)
Skateboards to make per month to Break Even? ------------ ~ skateboards\month
Monthly Revenue needed to Break Even? $------------- (two decimals)
Skateboards sold to reach desired profit? -------------- ~ skateboards\month
Monthly Revenue needed for desired profit? $------------ (two decimals)
Expert Answer:
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