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Odve Composite Printing Company currently leases its only copy machine for $1,800 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based Under the new agreement Composite would pay a commission for its printing at a rate of $15 for every 500 pages printed The company currently charges $0.30 per page to its customers. The paper used in printing costs the company $0.06 per page and other variable costs, including hourly labor amount to S0.09 per page Read the requirements First determine the formula used to calculate the breakeven point in units then calculate the company's breakeven point under the current Masing agreement (Enter a "0" for any zero balances) Fixed costs Contribution margin per unit 0.15 S 1800 Breakeven number of units 12,000 What is it under the new commission-based agreement? (Enter a "0" for any zoro balances The company's breakeven point under the new commission-based agreement is O units Requirement 2. For what range of sales levels will Composite prefer (a) the fixed lease agreement and (by the commission agreement? In order to determine the range of sales levels Composite would prefer for each agreement, we must first calculate the indifference point The indifference point sales volume at which the income from alternative 1 oquals the income from alternative 2 Now calculate the indifference point (Round to the nearest whole number The indifference point is at 00 000 units Composite would prefer the fixed lease agreement at sales more than the indifference point The commission based agreement would be preferred at units up to the indifference point Requirement 3. Composite estimates that the company is equality kely to sell 30000 40000 50000 80000 or 70.000 pages of print Using information from the original problem prepare a table that shows the expected profit and lever under the forced teasing agreement and under the commission-based Antenment What is the necind valor Which are neinaste honey Read the requirements. Begin with the fixed leasing agreement. (Use parentheses or a minus sign for losses.) Fixed leasing agreement Expected Sales level Profit/(Loss) Profit/(Loss) 30,000 $ 2.700 $ 540 40,000 $ 4,200 $ 840 50,000 S 5,700 S 1.140 60.000 $ 7 200 $ 1.440 70 000 $ 8,700 $ 1.740 S 5700 Total expected profit(loss) Next calculate the expected profit at each sales level under the commission based agreen Commission-based agreement Next, une exp One Lle on ba Commission-based agreement Expected Profit/(Loss) Sales level Profit/(Loss) $ 3,600 30,000 $ 720 40,000 $ 4,800 $ 960 50,000 $ 6,000 $ 1.200 60.000 S 7.200 $ 1.440 70.000 $ 8.400 $ 1.680 $ Total expected profit/(loss) 6 000 Composite should choose the commission-based agreement Help Me Solve This e Text Pages Get More Help wag Ping Company is only coach 3.300 a mother condentes as welcome dette com forhof 25 eily 500 open the country che 023 page to score the pead ping cost per poder condition 1000g Requirements, Westportunder the couragement What is the combined tamu cateve posted the core transmetuar me Enter - X Requirements 1 Walthede under the code 1 Foto Tec 3001010 to the co Done Odve Composite Printing Company currently leases its only copy machine for $1,800 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based Under the new agreement Composite would pay a commission for its printing at a rate of $15 for every 500 pages printed The company currently charges $0.30 per page to its customers. The paper used in printing costs the company $0.06 per page and other variable costs, including hourly labor amount to S0.09 per page Read the requirements First determine the formula used to calculate the breakeven point in units then calculate the company's breakeven point under the current Masing agreement (Enter a "0" for any zero balances) Fixed costs Contribution margin per unit 0.15 S 1800 Breakeven number of units 12,000 What is it under the new commission-based agreement? (Enter a "0" for any zoro balances The company's breakeven point under the new commission-based agreement is O units Requirement 2. For what range of sales levels will Composite prefer (a) the fixed lease agreement and (by the commission agreement? In order to determine the range of sales levels Composite would prefer for each agreement, we must first calculate the indifference point The indifference point sales volume at which the income from alternative 1 oquals the income from alternative 2 Now calculate the indifference point (Round to the nearest whole number The indifference point is at 00 000 units Composite would prefer the fixed lease agreement at sales more than the indifference point The commission based agreement would be preferred at units up to the indifference point Requirement 3. Composite estimates that the company is equality kely to sell 30000 40000 50000 80000 or 70.000 pages of print Using information from the original problem prepare a table that shows the expected profit and lever under the forced teasing agreement and under the commission-based Antenment What is the necind valor Which are neinaste honey Read the requirements. Begin with the fixed leasing agreement. (Use parentheses or a minus sign for losses.) Fixed leasing agreement Expected Sales level Profit/(Loss) Profit/(Loss) 30,000 $ 2.700 $ 540 40,000 $ 4,200 $ 840 50,000 S 5,700 S 1.140 60.000 $ 7 200 $ 1.440 70 000 $ 8,700 $ 1.740 S 5700 Total expected profit(loss) Next calculate the expected profit at each sales level under the commission based agreen Commission-based agreement Next, une exp One Lle on ba Commission-based agreement Expected Profit/(Loss) Sales level Profit/(Loss) $ 3,600 30,000 $ 720 40,000 $ 4,800 $ 960 50,000 $ 6,000 $ 1.200 60.000 S 7.200 $ 1.440 70.000 $ 8.400 $ 1.680 $ Total expected profit/(loss) 6 000 Composite should choose the commission-based agreement Help Me Solve This e Text Pages Get More Help wag Ping Company is only coach 3.300 a mother condentes as welcome dette com forhof 25 eily 500 open the country che 023 page to score the pead ping cost per poder condition 1000g Requirements, Westportunder the couragement What is the combined tamu cateve posted the core transmetuar me Enter - X Requirements 1 Walthede under the code 1 Foto Tec 3001010 to the co Done

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