Nator Group is establishing an factory in Newsouth wale, Australia. Fixed monthly expenses are factory rent ($9,000 +STT), depreciation on factory machine ($2,000 +STT), utilities ($1,700 +STT), telephone bills ($1,500 +STT), a connection with an online service ($3,000 +STT), and the salary of a worker ($5,500 +STT). Variable costs include payments to the marketer planning (11% of revenue), administration expense (10% of revenue), supplies (5% of revenue), and usage fees for the telephone lines and water bill at office(10% of revenue). Requirements STT=38 

1. Apply the contribution margin ratio approach to calculate Nator Group breakeven revenue in dollars. If the average service leads to $1,500 in revenue per service for Nator Group, how many service must be made to break even? (0.5 point) 

2. Apply the equation approach to calculate the dollar revenues needed to earn a monthly target profit of $13,400. (0.25 point) 

3. Suppose that the average revenue Nator earns increases to $1,600 per service. Compute the new breakeven point in service. How does this affect the breakeven point? (0.25 point).

Answer rating: 100% (QA)

1 Calculation for total fixed costs Factory rent 9000 32 9032 Depreciation expense on factory machin... View the full answer