1. JC company sells a product for $20.00 which has a variable cost of $6 and fixed costs of
$792,000. a. Find the contribution margin $_____ for the product JC company sells based on the
information in the problem and contribution margin % ________%. Show your work in detail. b.
Suppose the variable cost has been increased to $7 because of inflation. What will be the
contribution margin % _______% in the problem with all other factors remain the same. Show
your work. 2. Total Man company has developed a cologne that has a unit variable cost of $0.45
for a three ounce bottle and total fixed cost of $900,000. The company plans to sell each bottle
for $7.50. a. Find out how many bottles does the company need to sell to break even? Must show
the work. b. Compute the TR at the BE point. _$________________ Show the work. c. Compute
the TC at the BE point. _$________________ Show the work..
1- JC company sells a product for $20-00 which has a variable cost of.pdf
1. 1. JC company sells a product for $20.00 which has a variable cost of $6 and fixed costs of
$792,000. a. Find the contribution margin $_____ for the product JC company sells based on the
information in the problem and contribution margin % ________%. Show your work in detail. b.
Suppose the variable cost has been increased to $7 because of inflation. What will be the
contribution margin % _______% in the problem with all other factors remain the same. Show
your work. 2. Total Man company has developed a cologne that has a unit variable cost of $0.45
for a three ounce bottle and total fixed cost of $900,000. The company plans to sell each bottle
for $7.50. a. Find out how many bottles does the company need to sell to break even? Must show
the work. b. Compute the TR at the BE point. _$________________ Show the work. c. Compute
the TC at the BE point. _$________________ Show the work.
