Consider the information below as part of the cost\'s structure about any Compan

Question

Consider the information below as part of the cost's structure about any Company. This Company sells a car's component.The component's price is $12.80. The retail price is $65.50. It costs the company as follows: $3.85 to manufacture one car's component, $1.350 for shipping and handling, $1.70 to package it, and $0.89 of variable costs per component.

a. Calculate the contribution margin.

b. The monthly fixed costs of the Company is $35,500. How many components would the company need to sell in order to break even?

c. What would be the markup percentage for the following:

Manufacturer ---- Retailer

Retailer --- Consumer

Explanation / Answer

a) The contribution margin is the amount of money earned for the company... b) Use the P(x) = R(x) - C(x) form

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