Tree Inc. sells its only product for $20. Variable cost is $7.50 per unit, and...
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Tree Inc. sells its only product for $20. Variable cost is $7.50 per unit, and fixed cost is $5,000 per month. Required Calculate the following: (a) The contribution margin per unit (b) The contribution margin ratio (c) The break-even point (d) The expected operating profit in a month when 500 units are sold (e) The number of units that need to be sold to make an operat- ing profit of $2,000
Tree Inc. sells its only product for $20. Variable cost is $7.50 per
unit, and fixed cost is $5,000 per month.
Required
Calculate the following:
(a) The contribution margin per unit
(b)
The contribution margin ratio
(c)
The break-even point
(d) The expected operating profit in a month when 500 units are
sold
(e)
The number of units that need to be sold to make an operat-
ing profit of $2,000
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