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Homework Problem #3- Boards Inc. fabricates skateboards that the company sells...

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Accounting

Homework Problem #3-
Boards Inc. fabricates skateboards that the company sells for $37.50 each. For the month, the company has total fixed costs of $4,800. Total variable cost per unit is $22.50.
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 $8.50.
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:
\table[[Fixed Cost,Variable cost per unit,\table[[Contribution Margin per unit],[(sales price - VC)]]],[,,]]
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