Seasons, Inc. manufactures holiday wreaths and sells them directly to retailers for $5.00. The manufacturer’s cost information is as follows:
Variable cost $3.35/wreath
Advertising and promotion $300,000
Calculate the following:
a. contribution per unit and contribution margin for the manufacturer
b. break-even volume in units and dollars
c. volume in units and dollar sales necessary if Seasons’ profit goal is $500,000
d. net profit if 6 million wreaths are sold
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