Solve the following problem using the Contribution Margin Approach.
Clone Computers assembles and packages personal computer systems from brand-name components. Its Home Office PC System is assembled from components costing $1400 per system and sells for $2000. Labour costs for assembly are $100 per system. This product line's share of overhead costs is $10,000 per month.
a) How many Home Office Systems must be sold each month to break even on this product line?
b) What will be the profit or loss for a month in which 15 Home Office Systems are sold?

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The Answer of Solve the following problem using the Contribution Margin Approach.
Clone Computers assembles and packages personal computer systems from brand-name components. Its Home Office PC System is assembled from components costing $1400 per system and sells for $2000. Labour costs for assembly are $100 per system. This product line's share of overhead costs is $10,000 per month.
a) How many Home Office Systems must be sold each month to break even on this product line?
b) What will be the profit or loss for a month in which 15 Home Office Systems are sold?

Solve the Following Problem Using the Contribution Margin Approach