Apple, Inc. tells us that the fixed costs to produce iPods are $35,000 per month. Fixed costs to produce the Macintosh computers are also $35,000 per month. iPods sell for $300 each and have a variable cost of $60. Macs sell for $3,000 and have a variable cost of $800.

Calculate the following for each product:

(a) Contribution to overhead and profit (in dollars per unit sold)
(b) Contribution percentage (as a percentage of sales price)
(c) The number of units that must be sold in a month to break-even (revenue = total costs)
(d) The dollar amount of sales revenue at break-even

Answer rating: 100% (QA)

a Contribution to overhead and profit in dollars per unit sold For iPods Contribution Sales price Va... View the full answer