A Company sells their product for $100 each. Manufacturing cost is $20.60 Item; marketing costs are $20.40 per Item; and royalty payments are 20% of the selling price. The fixed cost of preparing products is $28,000. Capacity is 25,000 jump drives.

Complete each question in a separate excel sheet within the same workbook.

1.Compute

1.the contribution margin.

2.the contribution rate.

2.Compute the break-even point.

1.in units

2.in dollars

3.as a percent of capacity

3.Draw a detailed break-even chart.

4.Determine the break-even point in units if fixed costs are increased by $3600, while manufacturing cost is reduced by $5.50 per item.

5.Determine the break-even point in units if the selling price is increased by 20%, while fixed costs are increased by $3900.