Short Answer
Go to the textbook's OLC (www.mcgrawhill.ca/olc/jerome/) and work your way to the Student Edition. In the navigation bar, select "Chapter 5" in the dropdown box. In the list of resources for Chapter 5, select "Links in Textbook" and then click on the link named "Contribution Margin Chart". Use the chart to solve the following problem:
ChildCare Industries manufactures infant car seats that it sells to retailers for $155 each. The costs to manufacture each additional seat are $65, and the monthly fixed costs are $18,000.
a) To just break even, how many CDs must be sold per month if the fixed costs are $60,000 per month?
b) What must sales be in order to have a profit of $7500 per month?
Correct Answer:

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a) 40,000 ...View Answer
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Correct Answer:
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