Reference no: EM133042866
Question - Classy Canines manufactures designer dog collars. The following information pertains to the product:
Selling price per dog collar: $30
Variable costs per dog collar: $18
Total fixed operating costs: $327,000
Quantity expected to be sold: 65,000
Required -
a) Calculate the contribution margin if 65,000 collars are sold.
b) Calculate the net income at the current volume of 65,000.
c) If Classy Canines sells only 45,000 dog collars due to a new competitor, calculate the company's net income.
d) Calculate the break-even point in units.
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