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MyArt Sells Framed Art Prints for $100

Question 189

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MyArt sells framed art prints 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.
Required:
a.What is the contribution margin per print?
b.What is the breakeven point in prints?
c.How many prints must be sold to earn pretax income of $7,500?

Correct Answer:

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a.CM per print = $100 - $50 - 0.1($100) ...

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