Birdie Par owns a company that makes golf gloves. She is thinking about introducing a new glove, which would require an additional fixed cost of $20,000 per year. The variable costs for the new glove have been estimated to be $5 per glove.
a) If she sells the new glove for $15, how many must she sell to break even?
b) If she sells 3,000 gloves at the $15 price, what will the contribution to profit be?

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The Answer of Birdie Par owns a company that makes golf gloves. She is thinking about introducing a new glove, which would require an additional fixed cost of $20,000 per year. The variable costs for the new glove have been estimated to be $5 per glove.
a) If she sells the new glove for $15, how many must she sell to break even?
b) If she sells 3,000 gloves at the $15 price, what will the contribution to profit be?

Birdie Par Owns a Company That Makes Golf Gloves