Short Answer
Use the Interactive break-even Chart and its accompanying in the textbook's OLC to answer the following problem. To access the chart, follow the instructions given in the NET @ssets box at the beginning of section 5.4 in the text.
Clone Computers assembles and packages personal computer systems from brand-name 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?
Correct Answer:

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a) 20 syst...View Answer
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