What is the contribution margin and break-even dollar amount

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Reference no: EM131450935

You want to open up a custom skateboard shop. You can sell each skate-board for $160. It takes 3 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.

1. What is the contribution margin?

2. How many skateboards must be sold each month in order to break even?

3. What is the break-even dollar amount?

4. How many skateboards must be sold to earn a s10,000 profit each month?

5. What is your total monthly revenue if you want to earn a profit of $8,000?

Reference no: EM131450935

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