Xyz company is a retailer of widgets xyz pays 475 for each, Financial Accounting

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Xyz company is a retailer of widgets xyz pays 475 for each

XYZ Company is a retailer of widgets. XYZ pays $4.75 for each widget and sells them for $8.00. Monthly fixed costs are $26,000. The widget cost is the only variable cost.

a. What is the contribution margin per unit?

b. What is the break-even point in units?

c. How many units will XYZ need to sell to earn target profit of $13,000?

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Financial Accounting: Xyz company is a retailer of widgets xyz pays 475 for each

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Financial Accounting: Xyz company is a retailer of widgets xyz pays 475 for each

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