The Superior Jumpdrive Company sells jump drives for $10 each. Manufacturing cost is $2.60 per jump drive; marketing costs are $2.40 per jump drive, and royalty payments are 20% of the selling price. The fixed cost of preparing the jump drive is $18,000. Capacity is 15 000 jump drives. a. Compute i. the contribution margin ii. the contribution rate. b. Compute the break-even point i. in units ii. in dollars iii. as a percent of capacity. c. Draw a detailed break-even chart d. Determine the break-even point in units if fixed costs are increased by $1600 while manufacturing cost is reduced by $0.50per jump drive. Determine the break-even point in units if the selling price is increased by 10%, while fixed costs are increased by $2900.
The Superior Jumpdrive Company sells jump drives for $10 each.
i. the contribution margin
ii. the contribution rate.
b. Compute the break-even point
i. in units
ii. in dollars
iii. as a percent of capacity.
c. Draw a detailed break-even chart
d. Determine the break-even point in units if fixed costs are increased by $1600 while manufacturing cost is reduced by $0.50per jump drive. Determine the break-even point in units if the selling price is increased by 10%, while fixed costs are increased by $2900.
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