Go to the textbook's OLC (www.mcgrawhill.ca/olc/jerome/) and work your way to the Student Edition. In
the navigation bar, select "Chapter 5" in the dropdown box. In the list of resources for Chapter 5,
select "Links in Textbook" and then click on the link named "Contribution Margin Chart". Use the chart
to solve the following problem:
ChildCare Industries manufactures infant car seats that it sells to retailers for $155 each. The costs to
manufacture each additional seat are $65, and the monthly fixed costs are $18,000.
a) How many seats must be sold per year to break even?
b) What will ChildCare's loss be if it sells 2000 seats in a year?

Question

Quizplus · Accepted Answer

The Answer of Go to the textbook's OLC (www.mcgrawhill.ca/olc/jerome/) and work your way to the Student Edition. In
the navigation bar, select "Chapter 5" in the dropdown box. In the list of resources for Chapter 5,
select "Links in Textbook" and then click on the link named "Contribution Margin Chart". Use the chart
to solve the following problem:
ChildCare Industries manufactures infant car seats that it sells to retailers for $155 each. The costs to
manufacture each additional seat are $65, and the monthly fixed costs are $18,000.
a) How many seats must be sold per year to break even?
b) What will ChildCare's loss be if it sells 2000 seats in a year?

Go to the Textbook's OLC (Www