Solved

Holly IncSells a Single Product for $40

Question 111

Essay

Holly Inc.sells a single product for $40.Variable costs include $22 for each unit plus a 10% sales commission.Fixed costs are $105,000 per month.
a.What is the contribution margin percentage?
b.What is the breakeven sales revenue?
c.What sales revenue is needed to achieve a $140,000 per month profit?

Correct Answer:

verifed

Verified

a.35% = ($40 - $22 - 10% × $40)/$40.00
b...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents