Disc Buddy, Inc. produces flash drives. The selling price is $8 per drive. The variable cost of production is $2.40 per unit and the fixed cost per month is $3,600. Calculate the contribution margin associated with each flash. In August, the company sold 200 more flash drives than What is the expected effect on profit of selling the additional drives.  Calculate the contribution margin ratio associated with one flash drive. In October, the company had sales that were $2,400 higher than planned. What is the expected effect on profit related to the additional sales?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Disc Buddy, Inc. produces flash drives. The selling price is $8 per drive. The variable cost of production is $2.40 per unit and the fixed cost per month is $3,600.

  1. Calculate the contribution margin associated with each flash.
  2. In August, the company sold 200 more flash drives than What is the expected effect on profit of selling the additional drives.
  3.  Calculate the contribution margin ratio associated with one flash drive.
  4. In October, the company had sales that were $2,400 higher than planned. What is the expected effect on profit related to the additional sales?
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