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Homework answers / question archive / Randolph runs a lemonade stand and wants to make $150 in the next week
Randolph runs a lemonade stand and wants to make $150 in the next week. He sells each cup of lemonade for $0.75, while the variable cost is $0.15 for the cups and ingredients. Fixed costs such as posters and signs are $15.00.
Calculate the following:
a. Contribution margin per unit sold
b. Contribution margin ratio
c. Breakeven point in units
d. Units to be sold to earn the targeted operating income
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