Question: Solve using the Contribution Margin approach. Clone Computers assembles and packages personal computer systems from brandname components. Its Home Office PC System is assembled from

Solve using the Contribution Margin approach.

Clone Computers assembles and packages personal computer systems from brandname components. Its Home Office PC System is assembled from components costing $1400 per system and sells for $2000. Labour costs for assembly are $100 per system. This product line’s share of overhead costs is $10,000 per month.

a. How many Home Office Systems must be sold each month to break even on this product line?
b. What will be the profit or loss for a month in which 15 Home Office Systems are sold?

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