(Carla) Bell Industries sells samsung phones for CDN$100. ...
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Accounting
(Carla)
| Bell Industries sells samsung phones for CDN$100. | |||||||||||
| The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 | |||||||||||
| per month, while fixed selling and administrative costs total $2,500. | |||||||||||
| a. What is the contribution margin per phone? | |||||||||||
| Seling Price - Variable Cost | |||||||||||
| CND$100 - $50 = $50.00 | |||||||||||
| b. What is the breakeven point in phones? | |||||||||||
| Fixed cost Contribution Margin per phone | |||||||||||
| $1,250 + $2,500 = $3,750.00 $50.00 = 75 phones | |||||||||||
| c. How many phones must be sold to earn a targeted profit of $7,500 | |||||||||||
| Target Profit = Fixed Cost + Target Profit Contribution Margin | |||||||||||
| $3,750 + $7,500 = $11,250 50 = 225 Are these answers correct/wrong. Comment on answers. | |||||||||||
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