A company that manufactures a new board game called Gotcha! is starting up. In the first year,

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Question:

A company that manufactures a new board game called Gotcha! is starting up. In the first year, the company receives orders for and produces 14,000 games from online sales. They decide to sell the product for $18.00/game. Online and TV advertising cost $40,000 for the first year. Company overhead costs are $18,000. The manufacturing cost is $15.65/game. Does this start-up company make a profit during the first year? How much?

Contribution Margin per unit =

Total contribution =

Profit =(hint: Profit = Total Contribution - FC)