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 $53, and he is planning to sell the accessories for $120 each. Fixed costs for advertising amount to $580.
(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 as needed.)