# Question: You want to open up a custom skate board shop

You want to open up a custom skate board shop. You can sell each skate board for $160. It takes 3 hours to make each skate board. Each skate board maker earns $25 per hour. Each skate board costs $15 in raw materials. You estimate that your fixed costs are $20,000 per month.

a. What is the contribution margin?

b. How many skate boards must be sold each month in order to break even?

c. What is the breakeven dollar amount?

d. How many skate boards must be sold to earn a $10,000 profit each month?

e. What is your total monthly revenue if you want to earn a profit of $8,000?

a. What is the contribution margin?

b. How many skate boards must be sold each month in order to break even?

c. What is the breakeven dollar amount?

d. How many skate boards must be sold to earn a $10,000 profit each month?

e. What is your total monthly revenue if you want to earn a profit of $8,000?

## Answer to relevant Questions

Using the Van Accessible data from table 5-4: a. Calculate the degree of operating leverage (DOL). b. Calculate the degree of financial leverage (DFL). c. Calculate the degree of combined leverage (DCL). d. Explain what the ...The Faster Modem Corporation was founded by two engineers who managed to capitalize their firm with $150,000. They were able to raise this money because their test model performed much faster than current modems on the ...What are the basic criteria for selecting a forecasting model? Jane White has recorded the following sales figures for last year for her business: January, $35,645; February, $35,456; March, $31,270; April, $32,129; May, $34,456; June, $35,256; July, $36,218; August, $35,456; September, ...Using the data in Table 6-11, calculate the following: a. What is the slope? b. What is the intercept? c. Write the regression equation. d. Calculate a regression forecast for month 25.Post your question