Portia Company is a retailer of hammers.Portia pays $4.75 for each hammer and sells them for $8.00.Monthly fixed costs are $26,000.The hammer cost is the only variable cost.
a.What is the contribution margin per unit?
b.What is the break-even point in units?
c.How many units will Portia need to sell to earn target profit of $13,000?
Correct Answer:
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b.8,000 = $26,00...
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