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Problem 2. Yammy Disc Co makes team logo ultimate discs for local schools and sports clubs. He charges $20 for each disc. Variable cost per disc are. Discs Logo Supplies Direct Labor Utilities for the printing machine Variable marketing and administrative costs $7.50 2.00 a. 1.00 0.50 2.00 Fixed overhead cost is $1,500 per month. Fixed selling and administrative costs are $2,000 per month. Yammy sold 750 discs last month. What is the contribution margin per disc? b. Suppose that Yammy wants to make a profit of $2,500 per month, how many discs must be sold? c. Suppose that Yammy has another option available, which uses 3D printing technology. This option does not require Yammy to purchase discs. Instead Yammy can print the discs with the logo incorporated in the plastic. If Yammy chooses this option, the new machine will increase the fixed overhead costs by $1,000 per month. Additionally, Yammy will not need to buy the disc and logo supplies. Instead, he will buy the 3D plastic filaments and supplies which will decrease the material costs by $2. The other costs will remain the same. Assume Yammy plans on selling 750 discs every month. Which option should Yammy choose and why?

Problem 2. Yammy Disc Co makes team logo ultimate discs for local schools and sports clubs. He charges $20 for each dise Variable cost per disc are. Fixed overhead cost is $1,500 per month. Fixed seling and administrative costs are $2,000 per month. Yammy sold 750 dises last month. a. What is the contribution margin per disc? b. Suppose that Yammy wants to make a profit of $2,500 per month, how many dises must, be sold? c. Suppose that Yammy has another option available, which uses 3D printing technology This option does not require Yammy to purchase discs. Instead Yammy can print the discs with the logo incorporated in the plastic. If Yammy chooses this option, the new machine will increase the fixed overhead costs by $1,000 per month. Additionally, Yammy will not need to buy the disc and logo supplies. Instead, he will buy the 3D plastic filaments and supplies which will decrease the material costs by $2. The other costs will remain the same. Assume Yammy plans on selling 750 discs every month. Which option should Yammy choose and why