The marketing manager of Finch Corporation has determined that a market exists for a telephone with...

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The marketing manager of Finch Corporation has determined that a market exists for a telephone with a sales price of $21 per

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Answer 1

Answer #1

Answer:

Variable cost per unit

$6

Calculations:

Contribution margin per unit
Desired profit	$118,000
Add: Fixed costs	$579,500
Contribution margin	$697,500
÷ Sales in units	46,500
= Contribution margin per unit	$15.00

Variable cost per unit
Selling price per unit	$21
Contribution margin per unit	($15)
Variable cost per unit	$6

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Answer 2

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