Doggie Donuts sells treats for pets for $5 per box. The variable costs per box are $3. Doggie Donuts' fixed costs total $20 000.
a. Calculate the contribution margin per box.
b. Calculate the break-even point in boxes.
c. Calculate the profit that Doggie would earn if sales total 30,000 units.

Question

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The Answer of Doggie Donuts sells treats for pets for $5 per box. The variable costs per box are $3. Doggie Donuts' fixed costs total $20 000.
a. Calculate the contribution margin per box.
b. Calculate the break-even point in boxes.
c. Calculate the profit that Doggie would earn if sales total 30,000 units.

Doggie Donuts Sells Treats for Pets for $5 Per Box