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Best Buy is considering carrying the latest tablet, the FabTab, offered by CoolTech. Along with advertising costs, Best Buy will incur variable overhead to train

Best Buy is considering carrying the latest tablet, the FabTab, offered by CoolTech. Along with advertising costs, Best Buy will incur variable overhead to train personnel on the tablet and fixed overhead for store displays. The following information pertains to Best Buys revenue and costs for carrying the new tablet.

BB's FabTab Cost $185
Shrinkage/damage 8% of SP
Customer service OH 7% of SP
Additional US Store OH $750,000
National advertising/promotion $2,500,000
Retail selling price $425

1. Contribution per tablet cost

2. Break-even volume in tablet units and in dollars

3. Net profit if 25,000 tablets are sold

4. Necessary tablet unit volume to achieve a $5,000,000 profit.

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