I folks..I need some help with homework.. I'm being asked to estimate the correct price per customer, the question is: the company pays employees $100,000 per 6month period. the average cost of supplies per customer is $500. expected number of customers 500 (1st 6 months), 1,500 (2nd 6 months) the company wants to earn $200 per customer.
what would the correct price be per customer.
I think I should use the contribution margin ratio, but I don't know the exact formula. Can anyone help?
Thanks Smorin