Homework Problem #$3-$

Boards Inc. fabricates skateboards that the company sells for $$37\mathrm{.}50$ each. For the month, the company has total fixed costs of $$4,800.$ Total variable cost per unit is $$22\mathrm{.}50.$

What is the contribution margin per unit?

Calculate the breakeven sales volume for the month.

Calculate the sales volume necessary to produce a target net income of $$5,000$ per month.

The skateboards are manufactured in an old factory that relies heavily on worker labor. The company is considering the construction of a new automated plant that would increase fixed costs by $$4,320$ per month, but decrease the variable cost per board by $$8\mathrm{.}50.$

$4.$ What would the fixed costs and unit variable costs be under the proposal. Use the unit variable cost and sales price to calculate the unit contribution margin:

$\backslash$table$[[$Fixed Cost,Variable cost per unit,$\backslash$table$[[$Contribution Margin per unit$],[($sales price $-$ VC$)]]],[,,]]$