For Your Sole sells specialized running insoles. They sell their insoles for $75 each. The company has
Question:
For Your Sole sells specialized running insoles. They sell their insoles for $75 each. The company has determined the variable costs to be $30 per unit produced and $22,500 in monthly fixed expenses.
Using these numbers, calculate the following:
1.Break even points in units
2.Break even points in dollars
3.During the month of May, For Your Sole produced 900 insoles. Prepare a contribution margin income statement.
4.In order to reach their target profit of $45,000, how many insoles will they need to sell?
5.In order to reach their target profit of $45,000, what dollar sales will the company need?
6.During the month of July, the company had $150,000 in sales volume. Prepare a contribution margin income statement.
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu