Blazin-Boards Company plans to sell 10,000 snowboards at $400 each in the coming year. Product costs include:
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Question:
- Blazin-Boards Company plans to sell 10,000 snowboards at $400 each in the coming year. Product costs include: Direct Materials per snowboard $80 Direct Labor per snowboard $125 Variable overhead per snowboard $15 Total fixed factory overhead $800,000 Variable selling expense is a commission of 5% of the sales price. Fixed selling & administrative expenses total $400,000.
- Calculate the:
- Variable product cost per unit
- Selling expense per unit
- Total variable cost per unit
- Contribution margin per unit
- Contribution margin ratio
- How many snowboards must Blazin-Boards sell to break even?
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