Sportsbags Inc. makes and sells hockey bags for students. Financial projections for this line of products are revenue of $896,000, total variable costs of $242,920, and fixed costs of $595,000.
(a)How much is the contribution margin and the contribution rate?(b)How much of this product line does the business need to sell to break even?(c)If the business was to save $11,000 in variable costs by offering fewer colours of hockey bags, how much of this product line does the business need to sell to break even?(d)If a specialized logo was printed on the hockey bags, the variable costs would increase by 3%, and the fixed costs would increase by $12,000. If the price of the hockey bags was then increased by 4%, what would be the resulting net income?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here