MyArt Sells Framed Art Prints for $100

question 189

Essay

MyArt sells framed art prints for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500.
Required:
a.What is the contribution margin per print?
b.What is the breakeven point in prints?
c.How many prints must be sold to earn pretax income of $7,500?

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Definitions:

Normal Distribution

A probability distribution that is symmetrically centered around its mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Acres

A unit of land area used primarily in the US, equal to 4,840 square yards or approximately 4,047 square meters.

Bushels

A unit of volume that is commonly used in agriculture to measure quantities of grain, fruit, or other produce.

Years

Units of time equal to 365 days, or 366 in a leap year, used as a measure of time duration in relation to the Earth's orbit around the Sun.