estion 2 Warner Clothing is considering the introduction of a new baseball cap for sales by lo Sales price $15 Variable costs 3 per unit 42,000 per month Fixed costs a. What is the average contribution margin per unit? b. What number must Warner sell per month to break even? c. What number must Warner sell per month to make an operating profit of S30,000?
estion 2 Warner Clothing is considering the introduction of a new baseball cap for sales by lo Sales price $15 Variable costs 3 per unit 42,000 per month Fixed costs a. What is the average contribution margin per unit? b. What number must Warner sell per month to break even? c. What number must Warner sell per month to make an operating profit of S30,000?
Chapter1: Financial Statements And Business Decisions
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estion 2
Warner Clothing is considering the introduction of a new baseball cap for sales by lo
Sales price
$15
Variable costs
3 per unit
3 рег
Fixed costs
42,000 per
month
a. What is the average contribution margin per unit?
b. What number must Warner sell per month to break even?
c. What number must Warner sell per month to make an operating profit of S30,000?
d. What is the impact on operating profit if the sale price decrease by 10 percent?
e. Suppose that fixed costs for the year are 10 percent lower than projected and variab
the year? Will profit go up? Down? By how much?
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BI
US
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14px
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Transcribed Image Text:A Moving to another question will save this response.
estion 2
Warner Clothing is considering the introduction of a new baseball cap for sales by lo
Sales price
$15
Variable costs
3 per unit
3 рег
Fixed costs
42,000 per
month
a. What is the average contribution margin per unit?
b. What number must Warner sell per month to break even?
c. What number must Warner sell per month to make an operating profit of S30,000?
d. What is the impact on operating profit if the sale price decrease by 10 percent?
e. Suppose that fixed costs for the year are 10 percent lower than projected and variab
the year? Will profit go up? Down? By how much?
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
BI
US
Paragraph
Arial
14px
%24
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