Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. homework problem #3- boards inc. fabricates skat

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

60.1K

Verified Solution

Question

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)]]],[,,]]
image

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Q1 Individuals have full responsibility for creating meaning of their lives. Critically evaluate this statement. What could...

Psychology
Q

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa...

Accounting
Q

What is the morphology of Staphylococcus aureus?

Biology
Q

ased on your knowledge and the information presented in this lesson which answer best completes...

Biology
Q

12 Write 3 6565656565 as a fraction in lowest terms

Basic Math
Q

If CD DE 88 CF s 54 and EF E CE F D C 3s...

Basic Math
Q

When a cash dividend is declared, the A. Retained Earnings account is debited B. Retained...

Accounting
Q

Hammy comes into your office and tells people are his dependents. Please explain why for...

Accounting
Q

Do It! Review 9-3 Bridgeport Company has an old factory machine that cost $61.500. The...

Accounting
Q

Project Part B (PR-B): Accounting for Partnerships For Part B of the Project your teacher...

Accounting
Q

Instructions: Given the following information, determine the feasibility of this investment. Veronika has a great...

Finance
Q

Suppose a company has two mutually exclusive projects, both of which are three years in...

Finance