Solve using the Contribution Margin approach. ChildCare Industries manufactures infant car seats that it sells to retailers
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Solve using the Contribution Margin approach.
ChildCare Industries manufactures infant car seats that it sells to retailers for $155 each. The costs to manufacture each additional seat are $65, and the monthly fixed costs are $18,000.
a. How many seats must be sold per year to break even?
b. What will ChildCare’s loss be if it sells 2000 seats in a year?
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