Question: Consider the previous problem. Lets say our fixed costs are $35,000. What is our net profit? What is our breakeven point? We sell 1000 units
Consider the previous problem. Lets say our fixed costs are $35,000. What is our net profit? What is our breakeven point?
We sell 1000 units at $15 per unit. Variable costs per unit are $5. Our fixed costs are $6000. What is our breakeven point and how far above that point are we?
For the situation in the previous problem, because of supplier changes, we know our variable costs will increase next year to $8 per unit and our fixed costs are increasing by 20%. What is the new breakeven point? How many more units will we have to sell in order to maintain the total profits from the previous problem?
We sell 1000 units to wholesalers, who sell these units to distributors, who sell these units to retailers who sell these units to consumers. Consumers are paying $15 per unit. Retailers get a 30% margin, distributors receive a 10% margin, and wholesalers receive a 15% margin. Our variable costs are $4 per unit. What is our price per unit, our contribution per unit and our total contribution?
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