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James owned JLT Systems, a company that installs a security program to protect home from fire. The company charges $ 4 , 0 0 0

 James owned JLT Systems, a company that installs a security program to protect home from fire. The company charges $4,000 per install. Below are related information:

Each sale and installation requires JLT to incur a variable cost to install the program.

JLT has a linear cost structure meaning that JLT has a fixed cost each month and a variable cost per installation that does not vary with the number of installs.

At 600 installs per month, JLT's average cost is $4,500 per install.

JLT incurs fixed costs of $600,000 per month.

In a particular month, the companys maximum capacity is 1,500 installs.


Required:

Calculate the variable cost per install.

Determine the breakeven point in units of installation.

James is planning a targeted income of $200,000 in the coming period. Advise James whether or not this plan is achievable.

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