Your product unit costs are expected to be $2.50 per pair. Shipping and delivery costs to retailers
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Your product unit costs are expected to be $2.50 per pair. Shipping and delivery costs to retailers are estimated at $1.70 per unit. In addition, you will have to pay commissions of $.30 per unit sold to the sales representatives. You want a “markup” of 50% and your retailers want desired a mark-up before their expenses of 40 percent In addition, you want a salary of $7,000 per month. Other administrative expenses will be $2,500 per month. Find the units needed to be sold to reach breakeven (the units that should cover the fixed expenses).
41,475
45,818
38,475
50,667
59,660
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1119392422
8th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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