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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
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").
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