Question

EasyFind manufactures and sells golf balls. The company is conducting a price test to find a better price point. Presently their golf balls sell for $19 per dozen. Their current volume is 4,910 dozen per month. They are considering reducing their sales price by 28% per dozen. If EasyFind's variable costs are $10 per dozen, what is their total contribution each month at current prices

Answer 1

$44,190

Step-by-step explanation:

Selling price = $19

Variable cost = $10

Volume = 4,910 dozen per month

Contribution per unit = Selling price - Variable cost

Contribution per unit = $19 - $10

Contribution per unit = $9 per dozen

Total contribution = Volume*Per dozen contribution

Total contribution = 4,910 * $9

Total contribution = $44,190