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To pay for his academic fees, Tarek, a college student, is selling a computer accessory to other students. His cost to purchase each piece is
To pay for his academic fees, Tarek, a college student, is selling a computer accessory to other students. His cost to purchase each piece is
$74,
and he is planning to sell the accessories for $114
each. Fixed costs for advertising amount to $570.
(a)Compute the contribution margin.
(b)Compute the contribution rate.
(c)Compute the break-even point in units.
(d)Compute the break-even point in sales dollars.
a) The contribution margin per unit is
$ .
(Type a whole number.) b) The contribution rate is
%.
(Round to two decimal places as needed.) c) The break-even point in units is
.
(Round up to the nearest unit.) d) The break-even point in sales dollars is
$ .
(Round to the nearest cent Step by Step Solution
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