Question 1
Cindy's Chocolates sells its cream filled donuts for $1.50 each. The variable cost per unit for the donuts is $1.05 and total fixed costs are $9,000.
| a. | What is the contribution margin per unit for the donuts? |
| b. | What is the break-even point in sales dollars? |
Question 2
The New Age Pet Store sells butterfly garden kits which includes a free-standing pop-up habitat and three varieties of butterfly larvae. New Age sells the kits for $30. The store pays $12 for the habitat and $8 for the butterfly larvae. Fixed costs are $5,000.
| a. | What is the contribution margin ratio for the butterfly garden kits? |
| b. | What is the break-even point in units? |
Habitat corridor found in Banff National Park.
Butterfly fish
Garden Phlox
The Owl Butterfly
Free Radicals and Antioxidants
butterfly