Calculate the break-even point in hours for the firm

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Reference no: EM133027673

Question - Manch-Orch Incorporated provides call support center services. They offer two types of services: low-tech and high-tech.

Here is financial information for each of the service types:

 

Low-tech

High-tech

Total revenues

$3,000

$9,000

Total customer-specific variable costs

$1,000

$1,500

Total customer-specific fixed costs

$400

$1,000

Total allocated general fixed costs

$100

$180

Activities are measured in service hours.

The sales price per hour for low-tech is $15 per hour.

The sales price per hour for high-tech is $30 per hour.

The variable costs per hour is $5 per hour (for both low-tech and high-tech services).

Required -

1. Calculate the break-even point in hours for the firm as a whole, using the weighted average contribution margin method (i.e., composite method).

2. Please enter your answer rounded to nearest whole number, and include only numerals in your answer (i.e., do not include the word "hours").

Reference no: EM133027673

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