Given the following data, answer the questions below:
Soccer ball sale price $10
Soccer ball direct materials cost per ball $4
Soccer ball direct labor cost per ball $1
Commission for each soccer ball sold $1
Fixed factory overhead per period $100,000
Administrative costs per period $50,000
Advertising costs per period $50,000
Questions
What is the contribution margin per ball?
What are the dollars of fixed costs for the period?
How many soccer balls must be sold to break even for the period?
How many soccer balls must be sold to attain $40,000 operating profit?
How may soccer balls must be sold to break even for the period if you drop your price to $8?