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Author Question: The New Age Pet Store sells butterfly garden kits which includes a free-standing pop-up habitat and ... (Read 78 times)

lauraleepop

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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?


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Marked as best answer by lauraleepop on Feb 5, 2023

studyforce.com

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lauraleepop

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


atrochim

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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