Question: 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
| 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 lines 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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