Reference no: EM133043663

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