Homework Problem #
Boards Inc. fabricates skateboards that the company sells for $ each. For the month, the company has total fixed costs of $ Total variable cost per unit is $
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 $ 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 $ per month, but decrease the variable cost per board by $
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:
tableFixed Cost,Variable cost per unit,tableContribution Margin per unitsales price VC
