Answer Sales Material Labour for assembly time Contribution per unit Contribution margin. Contribution/Sales 100 120 50 24.5 105 minutes"USD 14/60 minutes per hour 45.5 A 38% 45.5/120 Computation of fixed costs Particulars Salaries Insurance Rent Utilities Total Fixed costs Amount for one year 115200 2400*4weeks per month 12 months 3200 800*4 quarters 19200 1600*12 months 14400 1200*12 months 152000 B Break even units - Total fixed costs/contribution per unit Contribution Margin Break even sales per month Break even dollars Sales fo 12000 monthly profit Computation of No of employees required No of units required Minutes required No of hours No of employees 3341 B/A 38% Computed above 278.3883 3341 units per year/ 12 months 400920 3341 units - 120 per unit 86153.85 (152000+(20000* 12 months)/38% of contribution margin/12 months 718 86153/120 per unit 75390 718105 1256.5 75390/60 7.853125 1256 hours/(8 hours 5 days per week 4 weeks) Answer Sales Material Labour for assembly time Contribution per unit Contribution margin-Contribution/Sales 100 120 50 24.5 105 minutes* USD 14/60 minutes per hour 45.5 A 38% 45.5/120 Computation of fixed costs Particulars Salaries Insurance Rent Utilities Total Fixed costs Amount for one year 115200 2400*4weeks per month 12 months 3200 800*4 quarters 19200 1600*12 months 14400 1200* 12 months 152000 B Break even units Total fixed costs/contribution per unit Contribution Margin Break even sales per month Break even dollars Sales fo 12000 monthly profit Computation of No of employees required No of units required Minutes required No of hours No of employees 3341 B/A 38% Computed above 278.3883 3341 units per year/ 12 months 400920 3341 units - 120 per unit 86153.85 (152000+(20000* 12 months))/38% of contribution margin/12 months 718 86153 / 120 per unit 75390 718*105 1256.5 75390/60 7.853125 1256 hours/ (8 hours 5 days per week 4 weeks) PART III - Effective Rate of Interest (15 points) 1. The Raw Materials Marty McFly purchases cost $50 each. Using the units you determined in your Break Even Analysis for the $30,000 profit (from BE part #5). Calculate the total Marty McFly needs to spend each month in order to purchase those raw materials. 2. Marty McFly purchases these materials from Holomax Inc. under sales conditions of 3/10 N/30. a. What would the Effective Rate of Interest be if payment were made on day 10? b. Day 11? c. And on day 302