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You want to open up a custom skateboard shop. You can sell each skateboard for $160. It takes three hours to make each skateboard. Each skateboard maker earns $25 per hour. Each skateboard costs $15 in raw materials. You estimate that your fixed costs are $20,000 per month.
What is the contribution margin?
How many skateboards do you need to sell each month in order to break even?
What is the breakeven dollar amount?
How many skateboards do you need to sell in order to earn a $10,000 profit each month?
What is your total monthly revenue if you want to earn a profit of $8,000?
In order to complete this exercise please use the Van Accessible data from table 5-4 (also available in your textbook on pg. 149).
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