My Art sells framed art prints for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. Required: a. What is the contribution margin per print? b. What is the breakeven point in prints? c. How many prints must be sold to earn pretax income of $7,500?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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My Art sells framed art prints for $100.
The unit variable cost per phone is $50
plus a selling commission of 10%. Fixed
manufacturing costs total $1,250 per
month, while fixed selling and
administrative costs total $2,500.
Required:
a. What is the contribution margin per
print?
b. What is the breakeven point in prints?
c. How many prints must be sold to earn
pretax income of $7,500?
Transcribed Image Text:My Art sells framed art prints for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. Required: a. What is the contribution margin per print? b. What is the breakeven point in prints? c. How many prints must be sold to earn pretax income of $7,500?
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