You want to open up a custom skateboard shop. You can sell each skateboard for $160. It takes 3 hours to make each skateboard. Each skateboard maker earns $25 per hour. Each skateboard costs $15 in...


You want to open up a custom skateboard shop. You can sell each skateboard
for $160. It takes 3 hours to make each skateboard. Each skateboard
maker earns $25 per hour. Each skateboard costs $15 in raw materials. You
estimate that your fixed costs are $20,000 per month.
a. What is the contribution margin?
b. How many skateboards must be sold each month in order to break even?
c. What is the break-even dollar amount?
d. How many skateboards must be sold to earn a $10,000 profit each month?
e. What is your total monthly revenue if you want to earn a profit of $8,000?



Jun 05, 2022
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