Portia Company is a retailer of hammers. Portia pays $3.80 for each hammer and sells them...

Transcribed Image Text:

Portia Company is a retailer of hammers. Portia pays $3.80 for each hammer and sells them for $8.45. Monthly fixed costs are $34,410. The hammer cost is the only variable cost. a. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution Margin per unit 35 b. What is the break-even point in units? (Do not round intermediate calculations.) Break-Even Point units c. How many units will Portia need to sell to earn target profit of $22,785? (Do not round intermediate calculations.) Total Number of Units Portia Company is a retailer of hammers. Portia pays $3.80 for each hammer and sells them for $8.45. Monthly fixed costs are $34,410. The hammer cost is the only variable cost. a. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution Margin per unit 35 b. What is the break-even point in units? (Do not round intermediate calculations.) Break-Even Point units c. How many units will Portia need to sell to earn target profit of $22,785? (Do not round intermediate calculations.) Total Number of Units

Answer rating: 100% (QA)

a Contribution Margin Per Unit Sales price variable cost per unit ... View the full answer