Woody's Widget Shop has the following information: The average widget has a sales price of $18; raw
Question:
a. How many widgets must be sold each month in order to break even?
b. How many dollars in sales does this represent?
c. What is the contribution margin for each widget sold?
d. If the goal is to make $100,000 profit per month, how many widgets will have to be sold?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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