Pratt Corporation
Information Relating to the Current Operations of Pratt

question 5

Essay

Pratt Corporation
Information relating to the current operations of Pratt Corporation follows:
$\begin{array}{ll}\text { Sales } & \$ 120,000 \\\text { Variable costs } & (\underline{36,000}) \\\text { Contribution margin } & \$ 84,000 \\\text { Fixed costs } & (\underline{\$ 70,000}) \\\text { Profit before taxes } & \$ 14,000\end{array}$ Refer to Pratt Corporation.Pratt's break-even point was 1,000 units.Compute Pratt's sales price per unit.

---

Definitions:

New Venture

A recently started business or project that typically involves some element of risk or innovation.

Confidential

Information or material meant to be kept secret or private between included parties.

Financial Status

The condition of one's financial health, often evaluated by income, expenses, debt, and assets.

Pitch

The act of clearly presenting and describing a product or service to others.