Question

Last month Watchworks Company had a $60,000 loss on sales of $300,000. Fixed costs are $120,000...

Last month Watchworks Company had a $60,000 loss on sales of $300,000. Fixed costs are $120,000 a month. Answer the following questions:

a. What was the contribution margin percentage?
b. What monthly sales volume (in dollars) would be needed to break-even?
c. What sales volume (in dollars) would be needed to earn $150,000?

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Answer #1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

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