Boston Donuts sells their special Boston Cream Donut for $2.00 each with a $.75 variable cost...

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Boston Donuts sells their special Boston Cream Donut for $2.00 each with a $.75 variable cost and a $5,000 monthly fixed cost. Calculate the following: Contribution margin- Break even in Boston Cream Donuts - Break even in sales dollars- How many Boston Cream Donuts must be sold for a target operating income of $4,500? What can be done to lower the break even in sales? Boston Donuts sells their special Boston Cream Donut for $2.00 each with a $.75 variable cost and a $5,000 monthly fixed cost. Calculate the following: Contribution margin- Break even in Boston Cream Donuts - Break even in sales dollars- How many Boston Cream Donuts must be sold for a target operating income of $4,500? What can be done to lower the break even in sales?

Answer rating: 100% (QA)

a Contribution margin The contribution margin is the selling price minus the variable cost per unit In this case the selling price is 2 and the variab... View the full answer