Berhannan’s Cellular sells phones for $100

Subject:AccountingPrice:2.87 Bought7

Share With

Berhannan’s Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500.

A. What is the contribution margin per phone?

B    What is the breakeven point in phones?        

c. How many phones must be sold to earn a targeted profit of $7,500?