Question: 3) Digital Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total
3) Digital 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 Required: a. What is the contribution margin per phone? b. What is the breakeven point in phones? C. How many phones must be sold to earn pretax income of $7,500
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
