A manufacturer plans to introduce a new type of shirt based on the following information. The...
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A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $35.00; variable cost per unit is $15.00; fixed costs are $8200.00; a) Calculate the break-even point (1) in units (use/show two methods) (ii) in dollars b) Calculate: (1). the contribution margin; (ii). the contribution rate. Question 2: A company sells jump drives for $10 each. Manufacturing cost is $2.60 per jump drive; marketing costs are $2.40 per jump drive; and royalty payments are 20% of the selling price. The fixed cost of preparing the jump drive is $18 000. a). Compute (1). the contribution margin; (i). the contribution rate. b). Compute the break-even point (i). in units (use two methods); (ii). in dollars. A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $35.00; variable cost per unit is $15.00; fixed costs are $8200.00; a) Calculate the break-even point (1) in units (use/show two methods) (ii) in dollars b) Calculate: (1). the contribution margin; (ii). the contribution rate. Question 2: A company sells jump drives for $10 each. Manufacturing cost is $2.60 per jump drive; marketing costs are $2.40 per jump drive; and royalty payments are 20% of the selling price. The fixed cost of preparing the jump drive is $18 000. a). Compute (1). the contribution margin; (i). the contribution rate. b). Compute the break-even point (i). in units (use two methods); (ii). in dollars.
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1 BEPGN units fixed Cost 1 method Contribution Margin prr unit Contsibution mTTgin perunit ... View the full answer
Related Book For
Advertising Promotion and Other Aspects of Integrated Marketing Communications
ISBN: 9781111580216
9th edition
Authors: Terence Shimp, Craig Andrews
Posted Date:
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