1.Radical Tech sells processing chips for $15 each. Manufacturing cost is $2.15 per unit; marketing costs are $3.40 per jump drive; and royalty payments are 15% of the selling price. The fixed cost of preparing the jump drive is $20,000. Capacity is 25,000 units.

a) i. Compute the contribution margin.

ii. the contribution rate.

b) Compute the break -even point.

i) in units

ii) in dollars.

iii. as a percent of capacity.

c) Determine the break-even point in units if fixed costs are increased by $2,600, while manufacturing cost is reduced by $0.75 per jump drive.

d. Determine the break-even point in units if the selling price is increased by 15%, while fixed costs are increased by $3,900.

2. Tony purchased some corporate gifts for an upcoming industry conference. His total spend was $8,500. Unfortunately, he lost his receipt. The applicable GST is 5%, PST is 7% and there was a $30 shipping charge. He now needs to determine the following:

a. Total GST paid

b. Total PST made.

c. Purchase price before tax & shipping charges.

3.A dealer bought personal computers for $1,250 less 25 %, and 15%. They were sold for $1,100.

a. What was the markup as a percent of cost? b. What was the markup as a percent of selling price?

4. James' income was $67,000 in 2010, $72,000 in 2014, and $78,000 in 2017. The Canadian CPI was 118.7 in 2014 and 122.6 in 2017. The CPI base year is 2010.

a. Determine James' real income in 2014 and 2017.

b. Should James be happy about his increases in salary from 2010 to 2017? Explain your results