Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A manufacturing company can make a maximum of 2498 webcams per month and sell them for $133 each. The company's fixed costs per month are
A manufacturing company can make a maximum of 2498 webcams per month and sell them for $133 each. The company's fixed costs per month are $28,009, and the variable costs are $96 per unit. a) Compute the contribution margin per unit. CM=$ b) Compute the contribution margin rate (round off to the nearest percent). Hint: Contribution margin rate is CM(%)=SPCM CM(%)=% c) Calculate the number of webcams the company needs to sell per month to break-even. xBE=webcams d) Calculate the break-even in dollars (round off to the nearest cent). TRBE=$ e) Calculate the break-even as a percent of capacity (round off to the nearest percent). %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started