As Computer Service Center Has the Capacity to Do 400

question 20

Short Answer

As computer service center has the capacity to do 400 jobs per day. The expected level of jobs demanded per day is 250 per day. The fixed cost of renting the computer process is $200 per day. Space rents for $100 per day. The cost of material is $15 per unit of work and $.35 cents of labor per unit. What is the break-even level of work?

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Definitions:

Variable Costs

Charges that directly align with the scale of production or the amount of output generated.

Transfer Price

The price charged for goods or services transferred between departments or divisions of the same company or between related entities.

Selling Division

A part of an organization responsible for selling the company's products or services.

Maximum Price

The highest price a buyer is willing to pay or the ceiling price set for a product or service in the market.