Ø Sean owns a company that bakes and packages cookies for bakeries in the area. He has fixed expenses of $6,500 per month. His contribution margin is $10 per package of cookies. Each package of cookies has a variable cost of $15.
Ø How many packages of cookies does Sean need to produce to break even?
Ø Sean is looking to make his company his primary source of income so he wants to make a profit of $7,000 per month.
Ø How many packages each month to achieve his desired profit?