Question: The Handy Doll Manufacturing Company has the following information The
The Handy Doll Manufacturing Company has the following information. The average doll sales price is $12.00, raw materials for a doll are $4, and it takes 15 minutes to assemble a doll. Production labor is paid $8.00 per hour. Operating expenses are as follows: salaries, $2,500 per week; insurance, $1,200 per quarter; rent, $1,500 per month; and utilities, $800 per month. How many dolls must be sold per month to break even? How many dollars in sales does this represent? What is the contribution margin for each doll sold?
Answer to relevant QuestionsFor the company in question 10, if the goal is to make a profit of $5,000 per month, how many dolls must be sold? What is the relationship among fixed costs, contribution margin, and the break-even point? James builds brick walls for custom homes. His annual sales are approximately $300,000, and his net income is $18,000. He has assets of $100,000 invested in this business. Tom sells window shades. His annual sales are ...What are the basic criteria for selecting a forecasting model? Your projected sales for the first three months of next year are as follows: January, $15,000; February, $20,000; and March, $25,000. Based on last year’s data, cash sales are 20 percent of total sales for each month. Of ...
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