Solve Problems 2, 3, and 4 earlier in this Exercise using the interactive chart and its accompanying report.

Problem 2:

Clone Computers assembles and packages personal computer systems from brand- name components. Its Home Office PC System is assembled from components costing $1400 per system and sells for $2000. Labour costs for assembly are $100 per system. This product line’s share of overhead costs is $10,000 per month.

Problem 3:

Huntsville Office Supplies (HOS) is evaluating the profitability of leasing a photocopier for its customers to use on a self-serve basis at 104 per copy. The copier may be leased for $300 per month plus 1.54 per copy on a full-service contract. HOS can purchase paper at $5 per 500-sheet ream. Toner costs $100 per bottle, which in normal use will last for 5000 pages. HOS is allowing for additional costs (including electricity) of 0.54 per copy.

Problem 4:

Jordan is developing a business plan for a residential building inspection service he wants to start up. Rent and utilities for an office would cost $1000 per month. The fixed costs for a vehicle would be $450 per month. He estimates that the variable office costs (word processing and supplies) will be $50 per inspection and variable vehicle costs will be $25 per inspection. Jordan would also spend $200 per month to lease a computer, and $350 per month for advertising.

Interactive Chart: