James owned JLT Systems, a company that installs a security program to protect home from fire. The company charges $$4,000$ per install. Below are related information:

Each sale and installation requires JLT to incur a variable cost to install the program.

JLT has a linear cost structure meaning that JLT has a fixed cost each month and a variable cost per installation that does not vary with the number of installs.

At $600$ installs per month, JLT$\text{'}$s average cost is $$4,500$ per install.

JLT incurs fixed costs of $$600,000$ per month.

In a particular month, the companys maximum capacity is $1,500$ installs.

Required:

Calculate the variable cost per install.

Determine the breakeven point in units of installation.

James is planning a targeted income of $$200,000$ in the coming period. Advise James whether or not this plan is achievable.

Answer rating: 100% (QA)

Answer JLT Systems Cost Analysis 1 Variable Cost per Install We can use the given information to cal... View the full answer