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  • Acct2121hw3 3-39

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    Ckay Lee
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    1) The contribution margin per woman is $50, calculated as revenue of $250 minus variable costs of $200. 2) The breakeven point is 72 women per month, calculated as fixed costs of $3,600 divided by the contribution margin of $50. 3) With the new customer, the contribution margin increases to $60 per customer, lowering the breakeven point to 152 customers per month.

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    ACCT2121HW3 3-39

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    1) The contribution margin per woman is $50, calculated as revenue of $250 minus variable costs of $200. 2) The breakeven point is 72 women per month, calculated as fixed costs of $3,600 divided by the contribution margin of $50. 3) With the new customer, the contribution margin increases to $60 per customer, lowering the breakeven point to 152 customers per month.

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    © All Rights Reserved
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    9 views1 page

    Acct2121hw3 3-39

    Uploaded by

    Ckay Lee
    1) The contribution margin per woman is $50, calculated as revenue of $250 minus variable costs of $200. 2) The breakeven point is 72 women per month, calculated as fixed costs of $3,600 divided by the contribution margin of $50. 3) With the new customer, the contribution margin increases to $60 per customer, lowering the breakeven point to 152 customers per month.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    1.

    Revenue $250
    per
    :
    woman

    Variable costs per woman


    :
    $200

    $250 $
    Contribution margin per
    zoo
    = -

    woman

    =
    $50

    Breakeven point $};Y÷ month


    = =
    72 woman
    per
    1¥)
    of customer
    $3,b°°$§,$4
    2.
    Target "number
    =
    152 customer
    month
    =

    per
    ( I
    3. New Contribution customer
    $3,600 +
    $1,520 +
    $4,000
    margin per
    =

    152
    = $60

    New average fee per customer


    =
    $200 + $60

    $260T
    =

    ( VC + cm )

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