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Selling price and contribution margin

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Mrs. Perry owns toilet paper shop. She buys boxes of toilet paper for $7.90, and she gets some classy toilet paper for $2.00 per roll. Each roll of toilet paper will serve 20 people. The rent for her store is $3,000 per month, and she pays monthly insurance of $200. Mrs. Perry sells each box of toilet paper for $15.00. What is the fixed cost, variable cost, selling price and contribution margin. How many units does she need to sell in order to reach a target profit of $2,000? How much profit would be made off of 1500 boxes of toilet paper? What is the break-even volume. 

Reference no: EM131654428

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