Question
QUESTION 4 Manch-Orch Incorporated provides call support center services. They offer two types of services: low-tech and high-tech. Here is financial information for each of
QUESTION 4
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Manch-Orch Incorporated provides call support center services.
They offer two types of services: low-tech and high-tech.
Here is financial information for each of the service types:
Low-tech High-tech Total revenues $3,000 $9,000 Total customer-specific variable costs $1,000 $1,500 Total customer-specific fixed costs $400 $1,000 Total allocated general fixed costs $100 $180 Activities are measured in service hours.
The sales price per hour for low-tech is $15 per hour.
The sales price per hour for high-tech is $30 per hour.
The variable costs per hour is $5 per hour (for both low-tech and high-tech services).
Question
Calculate the break-even point in hours for the firm as a whole, using the weighted average contribution margin method (i.e., composite method).
Please enter your answer rounded to nearest whole number, and include only numerals in your answer (i.e., do not include the word "hours").
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