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Ponsford's Cellular Sells Phones for $100

question 198

Essay

Ponsford's Cellular sells phones for $100.The unit variable cost per phone is $50 plus a selling commission of 10%.Fixed manufacturing costs total $1250 per month,while fixed selling and administrative costs total $2500.
Required:
a.What is the contribution margin per phone?
b.What is the break-even point in phones?
c.How many phones must be sold to earn pre-tax profit of $7500?
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Definitions:

Court

A governmental institution authorized to resolve legal disputes between parties and administer justice in legal cases.

Submission Agreement

A contract in which the parties agree to submit to arbitration to resolve disputes instead of going to court.

Arbitration Initiation

The formal starting process of arbitration, where a dispute is submitted to an impartial third party for a binding decision.

Court Alert

A notification system designed to inform participants or interested parties about updates or changes in court schedules, rulings, or other relevant judicial information.

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