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2.(42 marks) Rhoda runs a small home-based business to make and sell masks....

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Accounting

2.(42 marks) Rhoda runs a small home-based business to make and sell masks. The average material cost for one mask is $1.20, her labour cost is $1.00 per unit sold, and sells it to her customers on average of $3.50 per unit. She spends $150.00 per month for advertising.
a. (6 marks) What is the unit variable cost?
b. (6 marks) What is the unit contribution margin?
c. (6 marks) What is the contribution rate?
d. (6 marks) What is her net income or loss if 500 units are sold?
e. (6 marks) What is the break-even point in units?
f. (6 marks) What is the break-even point in dollars?
g. (6 marks) What is the new unit break-even point if she increases her advertising costs by 30% per month?

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Accounting