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Orange Tech. can make a maximum of 2743 webcams per month and sell them for $209 each. The company's fixed costs per month are $143,660, and the variable costs are $99 per unit. a) Compute the contribution margin per unit.   CM=CM=$ b) Compute the contribution margin rate (round off to the nearest percent). Hint: Contribution margin rate is CM(%)=CMSPCM(%)=CMSP        CM(%)=CM(%)= % c) Calculate the number of webcams the company needs to sell per month to break-even.

Orange Tech. can make a maximum of 2743 webcams per month and sell them for $209 each. The company's fixed costs per month are $143,660, and the variable costs are $99 per unit. a) Compute the contribution margin per unit.   CM=CM=$ b) Compute the contribution margin rate (round off to the nearest percent). Hint: Contribution margin rate is CM(%)=CMSPCM(%)=CMSP        CM(%)=CM(%)= % c) Calculate the number of webcams the company needs to sell per month to break-even.

Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Orange Tech. can make a maximum of 2743 webcams per month and sell them for $209 each. The company's fixed costs per month are $143,660, and the variable costs are $99 per unit.


a) Compute the contribution margin per unit.   CM=CM=$

b) Compute the contribution margin rate (round off to the nearest percent).

Hint: Contribution margin rate is CM(%)=CMSPCM(%)=CMSP

 

     CM(%)=CM(%)= %

c) Calculate the number of webcams the company needs to sell per month to break-even.

     xBE=xBE=  webcams

d) Calculate the break-even in dollars (round off to the nearest cent). 

    TRBE=TRBE= $

e) Calculate the break-even as a percent of capacity (round off to the nearest percent). 

    % 

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