2. Happy Toys makes wooden train sets, which it sells for $65 each. It has fixed...

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2. Happy Toys makes wooden train sets, which it sells for $65 each. It has fixed costs of $80,000 per year and variable costs per unit of $27. a. What is Happy Toys contribution margin per train set? b. Calculate the number of train sets Happy Toys must make and sell in order to break even. c. Happy Toys has a target profit of $85,000 for the year. How many train sets does Happy Toys have to sell in order to gain this profit? 2. Happy Toys makes wooden train sets, which it sells for $65 each. It has fixed costs of $80,000 per year and variable costs per unit of $27. a. What is Happy Toys contribution margin per train set? b. Calculate the number of train sets Happy Toys must make and sell in order to break even. c. Happy Toys has a target profit of $85,000 for the year. How many train sets does Happy Toys have to sell in order to gain this profit?

Answer rating: 100% (QA)

To solve this problem we need to use the concepts of contribution margin and breakeven analysis Give... View the full answer