Homework Answers
COntribution:
Sale Price = $ 100
- Mnufacturing Price = $ 50
- Sales commision = $ 10
Contribution per unit = $ 40
Break Even Point in No.of phones:
Total FIxed Cost / Contribution point
= $ 1250 + $ 2500 / $ 40
= $ 3750 / $40
= $ 93.75 i.e 94 units
C. No.of units to be sold for $ 7500
= Fixed Cost + Profit / Contribution per unit
= $ 3750 + 7500 / 40
= 11250 / 40
= 281.25 i.e 286 units
Q2:
Mixed Contribution
Break even point in units :
Total Fixed cost / Expected CPU
= 40000/12.8
= 3125 units
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