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 costs of preparing the jump drive is $18 000. Capacity is 15 000 jump drives.
Compute the contribution margin
Compute the contribution rate
Compute the break-even point in units
Compute the break-even point in dollars
Compute the break-even point (in units) as a percentage of capacity
Determine the break-even point in units if fixed costs are increased by $1600, while manufacturing cost is reduced by $0.50 per jump drive.
Determine the break-even point in units if the selling price is increased by 10%, while fixed costs are increased by $2900.
