For Your Sole sells specialized running insoles. They sell their insoles for $75 each. The company has determined the variable costs to be $30 per unit produced and $22,500 in monthly fixed expenses.

Using these numbers, calculate the following:

1.Break even points in units

2.Break even points in dollars

3.During the month of May, For Your Sole produced 900 insoles. Prepare a contribution margin income statement.

4.In order to reach their target profit of $45,000, how many insoles will they need to sell?

5.In order to reach their target profit of $45,000, what dollar sales will the company need?

6.During the month of July, the company had $150,000 in sales volume. Prepare a contribution margin income statement.

Answer rating: 100% (QA)

Break even point in units The breakeven point is the point where the total revenue equals the total costs or when the contribution margin selling pric... View the full answer