Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (carla) bell industries sells samsung phones f

(Carla) Bell Industries sells samsung phones for CDN$100. ...

70.2K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

O Invasion Stabilization Competition and co action Reaction Nudation O Nudation Invasion Competition and co...

Biology
Q

What do we know about Homo floresiensis? How old is it, where did it live, what...

Biology
Q

Hypertension is both a disorder in and of itself (a pathology which may require treatment)...

Biology
Q

12 A particle performing SHM is found at its equilibrium at t 1 sec and...

Physics
Q

8 A math test is worth 100 points and has a total of 38 questions...

Algebra
Q

Tyler Enterprises makes an assortment of computer support equipment. Dana Josephs, the new...

Accounting
Q

Basil Tooling uses a standard cost system to account for the costs of its one...

Accounting
Q

Find the equivalent uniform series "A" for the following cash flow i = 10%...

Accounting
Q

Exercise 5-44(Algo) Effect of recognizing uncollectible accounts expense on financial statements: Percent of...

Accounting
Q

Which of the following is true about intraperiod tax allocation? A. It is required...

Accounting
Q

Lawrence,an employee of Triple Time,Inc.,has gross salary for March of $4,000.The entire amount is under...

Accounting
Q

Eleanor's Mittens, Inc., a merchandising company, wants to prepare the budgeted balance sheet for the...

Accounting