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C. (14 points) Frankenstein Inc. produces and sells robots. They sell each robot for olem 3. $1,000 Variable cost per robot are. Direct Materials b. Direct Labor Utilities and other miscellaneous overhead Variable marketing and administrative costs Fixed manufacturing overhead cost is $200,000 per year. Fixed selling and administrative costs are $50,000 per year. Frankenstein sold 500 robots last year. a. What is the contribution margin per robot? $150.00 135.00 50.00 40.00 How many robots must Frankenstein sale to break even? Suppose that Frankenstein wants to make a profit of $50,000, how many robots must be sold? J00,000 + d. Suppose that Frankenstein has another option available, which uses improved technology reducing the direct labor costs. This option increases the fixed manufacturing overhead costs by $30,000 per year and decreases the direct labor cost by $50 per robot. All other costs remain the same. Assume 600 is the number of robots where Frankenstein is indifferent between the two options (point where both options produce the same profit). If Frankenstein expects to perform 500 robots which is less than the point of indifference, but more than the breakeven, which option would Frankenstein choose and why?

3. 1.000 : Variable cost per robot are Eirect Maferials Direct Labor Utilitics and other misecllancous overhead Variable marketing and administrative costs are $50,000 per year. Frankenstein sold 500 robots last year. a. What is the contribution markin per robot? b. How many robots must Frankensicin sale to break even? c. Suppose that Frankenstein wants to make a profit of $50,000, how many robots must be r00,000+ d. Suppose that Frankenstein has another option available, which uses improved technology reducing the direct labor costs. This option increases the fixed manufacturing overhead costs by $30.000 per year and decreases the direct labor cost by $50 per robot. All other is the indiffercnt berween the two options (poins produce the same profit). If Frankenstein expects to perforint of indifierence. rould Erankenstein choose and why