How much profit per month would shari earn

Reference no: EM132788004

Question 1: CVP relation and profit planning, contribution margin ratio approach (LO1, LO2). Shari Kay owns and operates Perfect Petals, a successful florist shop in Bloomington, Indiana. Shari estimates that her variable costs are $0.25 per sales dollar (i.e., variable costs represent 25% of revenue) and that her fixed costs amount to $6,000 per month.

Required:
a. How much revenue does Shari need to generate each month to break even?
b. How much profit per month would Shari earn if her revenues were $10,000 per month?

Question 2:

Contribution margin, unit level costs (LO1). Bodacious Beats makes high-end head- phones. At a volume of 15,000 units (headphones), per-unit price and cost data for the year just ended follow:

Approved

Item per unit

Selling price $800

Viable manufacturing costs $440

Fixed manufacturing overhead $ 50

Gross margin $ 310

Viable selling costs 40

Fixed selling and adm. Cost 10

Profit $ 160

Required

How many units (headphones) does Bodacious Beats need to sell each year to break even?

Attachment:- CVP relation and profit planning.rar

Reference no: EM132788004

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