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Unformatted text preview: CM for Hokies = $3.00 x 1 = $3.00 $33 + $3 = $36.00 CM per package X = $1,593,600 + $195,000(.65) $ 33 X = 52,600 packages = each package has 5 heels and 1 hokie = 263,000 heels, 52,600 hokies 1. Changing Parameters Less than or equal to 18,000 units = TFC of $250,000, VC = $45 per unit, CM = $15/unit Greater than 18,000 units and less than or equal 60,000 units = TFC of $350,000, VC = $52 per unit, CM = $8/unit Greater than 60,000 units = TFC of $578,000, VC = $56 per unit, CM = $4/unit Selling price = $60 per unit Want to earn a profit of $220,000  what level of units will do that? $250,000 + $220,000 = 31,333 units NWJ  no way Jose $15/unit $350,000 + $220,000  (18,000 units x $15 = $270,000) + 18,000 units = 55,500 units $8/unit Ex. 51 DM  Pure Variable DL  Pure Variable Utilities  Mixed Rent  Fixed Maintenance  Mixed Supervisor Salaries  Fixed Ex. 511 CM = Selling pricevariable cost...
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 Spring '08
 SKENDER
 HOKIES

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