A small but growing manufacturer of business class networkrouters. They produce two main types of routers, Model A and themore expensive variant, Model B. The company has a capacity ofproducing 500 Model A routers per month and currently produces 300routers of that type every month. The routers are sold to smallcomputer stores.

The company’s expenses are given below.

What are the contribution margin and the contribution rate[round to a full number]?

What is the break-even point in units? At their current level ofproduction, how many units above or below the break-even point iscompany working at? How much profit per month would be earned atthe current level of production? At the current level of productionwhat percent of capacity is utilized?

What is the BE volume as a percent of current production [usethe rounded number of BE units]? What is the BE volume as a percentof capacity [use the rounded number of BE units]?

Company has decided to increase its production from the current300 routers per month to 425 routers per month, while at the sametime lowering its selling price to $85. How would this change thecompany’s profit? A chain store wants to purchase additionalrouters from company on a regular basis. To meet the new demand,company expanded their facility by renting additional space. Thisincreased their total fixed cost by 30% and doubled their capacityto 1200 units. company wants to break-even at 25% of this newcapacity. What is the lowest price they can charge per router andstill break-even?

Expenses are unit price is provided below.

please provide details. Thank You.

Lease	1650	per month
Salaries	1050	per month
Other Expenses	850	per month
Materials	6	per unit
Labour	8	per unit
Sell Price	115	per unit