Question
Horst Inc. (HI) prepares personal loan pay-off plans for recent college graduates. HI has the following budget for next year: Prepare 1000 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 1000 plans. Incur costs as follows: Office rent for the year is $6000 Travel costs are estimated at $30 per plan Software costs $2000 per year plus $25 per plan. Printing and binding costs are $15 per plan. 1. How much will HI have to charge for each plan just to break-even for a year. Round to the nearest dollar. per plan. 2. If HI charges $300 per plan, and everything is as budgeted, what will HI have for a total contribution margin for the year?
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