You want to open up a custom skateboard shop. You can sell each skateboardfor $160. It takes 3 hours to make each skateboard. Each skateboardmaker earns $25 per hour. Each skateboard costs $15 in raw materials. Youestimate 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?
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