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Horst Inc. (HI) prepares personal loan pay-off plans for recent college graduates. HI has the following budget for next year: Prepare 2000 plans. Incur costs
Horst Inc. (HI) prepares personal loan pay-off plans for recent college graduates. HI has the following budget for next year: Prepare 2000 plans. Incur costs as follows: Office rent for the year is $6000 Travel costs are estimated at $50 per plan Software costs $4000 per year plus $40 per plan. Printing and binding costs are $20 per plan. How much will HI have to charge for each plan just to break-even for a year. Round to the nearest dollar. per plan. If HI charges $250 per plan, and everything is as budgeted, what will HI have for a total contribution margin for the year
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Calculating the BreakEven Price per Plan Step 1 Calculate the total cost per plan Fixed costs Office ...
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