Question: 2) Berhannans Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total
2) Berhannans Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. (10 Marks) Required: a. What is the contribution margin per phone? b. What is the break-even point in phones? c. How many phones must be sold to earn pre-tax income of $7,500
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