Homework answers / question archive / A computer manufacturer provides the following information about the operations of the shop: Fixed costs per period are $26,880; variable costs per unit are $360; selling price per unit is $640; and capacity is 150 units

A computer manufacturer provides the following information about the operations of the shop: Fixed costs per period are $26,880; variable costs per unit are $360; selling price per unit is $640; and capacity is 150 units

Finance

Share With

---

A computer manufacturer provides the following information about the operations of the shop: Fixed costs per period are $26,880; variable costs per unit are $360; selling price per unit is $640; and capacity is 150 units.

a. Compute

i. the contribution margin;

ii. the contribution rate.

b. Compute the break-even point

i. in units;

ii. as a percent of capacity;

iii. in sales dollars.

c. Determine the break-even point in sales dollars if fixed costs are increased to $32,200.

d. Determine the break-even point as a percent of capacity if fixed costs are reduced to $23,808, while variable costs are increased to 60% of sales.

 

Please use TI BA II calculator features (N, I/Y, PV, PMT, FV, AMORT) to solve questions (if possible)