Question

Question 4 o 1) ave&Exit Sub 077 points Laguna Print makes month, which consists primarily of printer depreciation and rent advertising hangers that are placed on doorknobs It charges 50.24 and estimates ts variable cost to be $0.2 per hanger Laguna's total foxed cost s $2.040p Calculiate the number of advertising hangers that Laguna must sel in order to break even (Round y nearest whole number your intermediate calculation to 2 decimal places and final answer to the References eBlook &Resources Difficuty 1Eas K. command opion command

Answer 1

Break Even		1,02,000	Hangers
Working:
Breake even is the level at which there is no profit or loss.
a.	Contribution margin per unit			=	Sales Price Per unit		-	Variable cost per unit
				=	$               0.24		-	$       0.22
				=	$               0.02
b.	Break Even			=	Fixed Cost/Cotribution margin per unit
				=	$             2,040	/	$       0.02
				=	1,02,000