48. 50. Tanner and Angela want to open a custom skateboard shop as a partnership business. They have prepared several cost estimates and are working on a breakeven analysis for their firm. They have gathered the following information: ● ● It is estimated that a skateboard will sell for $125 per unit. Variable expenses per skateboard are estimated to be as follows: a. Each skateboard costs $55 in raw materials. b. It takes 2 hours to make each skateboard: C. Each skateboard maker earns $15 per hour. Fixed expenses of the skateboard business, including facility rental are estimated to be $15,000 per month. Based on this information, please answer the following questions: a. What is the "Contribution Margin" earned on each skateboard that is sold? The contribution margin is 55 b. How many skateboards must be sold each month in order to break even? | C. What is the breakeven dollar amount in “Sales" per month?

48. 50. Tanner and Angela want to open a custom skateboard shop as a partnership business. They have prepared several cost estimates and are working on a breakeven analysis for their firm. They have gathered the following information: ● ● It is estimated that a skateboard will sell for $125 per unit. Variable expenses per skateboard are estimated to be as follows: a. Each skateboard costs $55 in raw materials. b. It takes 2 hours to make each skateboard: C. Each skateboard maker earns $15 per hour. Fixed expenses of the skateboard business, including facility rental are estimated to be $15,000 per month. Based on this information, please answer the following questions: a. What is the "Contribution Margin" earned on each skateboard that is sold? The contribution margin is 55 b. How many skateboards must be sold each month in order to break even? | C. What is the breakeven dollar amount in “Sales" per month?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 8PB: Colin OShea has a carpentry shop that employs 4 carpenters. Colin received an order for 1,000 coffee...

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