A notebook manufacturer makes notebooks with the following costs and sales data:
- Variable direct materials cost per notebook of $0.75
- Varaible direct labor cost per notebook of $0.85
- Monthly fixed costs of $12,500
- Selling price of $4/notebook
- Tax rate of 30%
- Projected monthly after income is 33,250
1.According to the information above, what is the notebook company's projected monthly volume of cupcakes sold?
2.According to the information above, what is the company's breakeven point (in number of notebooks)?
3.According to the information above, a retail store chain offers to buy 1,000 notebooks per month for the next six months if the company will accept a price of $2500 for each 1,000 notebook shipment. Should the company accept the contract (assume the company has adequate excess capacity). Why or why not?