What is the contribution margin for one arm-band carrier, Accounting Basics

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What is the contribution margin for one arm-band carrier

Question:

BREAK-EVEN IN UNITS

Mello-Tote Company manufactures nylon arm-band carriers for use with popular portable MP3 devices. Variable costs are $18 per arm-band carrier, the price is $28, and fixed costs are $43,000.

Required:

1. What is the contribution margin for one arm-band carrier?

2. How many arm-band carriers must Mello-Tote Company sell to break even?

3. If Mello-Tote Company sells 6,000 arm-band carriers, what is the operating income?

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Accounting Basics: What is the contribution margin for one arm-band carrier

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