Muskoka Tools Depot is selling snow blowers for $720.00 each. The same model blowers are being offered by Dixie Appliances for $504.00 each. What rate of discount should Muskoka Tools Depot offer to match the lower price?   The variable costs to manufacture a digital appliance are $260 per appliance and the selling price is $850 per appliance. The fixed costs are $46,520 per month. a. Calculate the contribution margin per appliance. Round to the nearest cent b. Calculate the number of appliances that need to be sold per month to break even.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
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Muskoka Tools Depot is selling snow blowers for $720.00 each. The same model blowers are being offered by Dixie Appliances for $504.00 each. What rate of discount should Muskoka Tools Depot offer to match the lower price?
 
The variable costs to manufacture a digital appliance are $260 per appliance and the selling price is $850 per appliance. The fixed costs are $46,520 per month.
a. Calculate the contribution margin per appliance.
Round to the nearest cent
b. Calculate the number of appliances that need to be sold per month to break even.
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