Example 2.1
The information below is used for the following problems.
Leslie's Soccer Balls sells soccer balls for $20 each and incurs variable costs of $15 per ball. Leslie's break-even point is 40 000 units.
-Refer to Example 2.1. What is Leslie's profit when 25 000 units are sold?

Question

Quizplus · Accepted Answer

Total CM less total costs, so ($20-$15) x 25 000 - $200 000 = $75 000 loss, OR as sales volume is 25 000 units under break-even point, 25 000 units x CM per unit of $5 = $75 000 loss

Example 2.1 The Information Below Is Used for the Following Problems