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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
Digital 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.

Required:
a.   What is the contribution margin per phone?
b.   What is the breakeven point in phones?
c.   How many phones must be sold to earn pretax income of $7,500?
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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#1
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9 years ago
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jerico Author
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#2
9 years ago
This solved my problem perfectly, thank you for your kind input.
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#3
9 years ago
Grinning Face
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#4
3 years ago
thankyou for the answer
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