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What is the contribution margin per phone

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Reference no: EM132551160

Berhannan's Cellular sells phones 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. (10 Marks)

Required:

Question 1: What is the contribution margin per phone?

Question 2: What is the break-even point in phones?

Question 3: How many phones must be sold to earn pre-tax income of $7,500?

Reference no: EM132551160

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