How many costing systems must brant consulting sell

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Case Study: Brant Consulting designs costing and transfer pricing system for its clients. Here is a summary of volume, revenue, and cost expectations for the upcoming year:

 Costing Projects Transfer Pricing Projects Firm
ItemPer Unit50 JobsPer Unit75 JobsTotal
Revenue $10,000 $500,000 $15,000 $1,125,000 $1,625,000
Variable cost 4,500 225,000 11,500 862,500 1,087,500
Contribution margin $5,500 $275,000 $3,500 $262,500 $537,500
Fixed cost         473,000
Profit         $64,500


Assume a constant sales mix.

Question (a) How many Costing systems must Brant Consulting sell to breakeven?

How many Transfer Pricing systems must Brant Consulting sell to breakeven?

Question (b) How many Costing systems must Brant Consulting sell to achieve a target profit of $86,000?

How many Costing systems must Brant Consulting sell to achieve a target profit of $86,000?

Reference no: EM133552174

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