Question.2591 - Please upload a word document showing all of your work. Submissions with only answers will not recieve credit. The following is annual financial information for a cell phone repair company that has hired you to conduct some pricing analysis for them. Take this information to answer the following questions. Total Number of repairs................ 3,500 Average price for repairs................ $200 Variable cost for repairs.................. $50 Fixed cost............................... $300,0001. Calculate the current contribution margin (15 points) 2. Calculate the current breakeven point. (20 points) 3. Calculate the unit cost. (15 points) 4. Calculate the price at a 20% markup of unit cost. (15 points) 5. Assume number of repairs increased to 4,550 at the 20% markup price calculated above. Calculate price elasticity of demand. (15 points) 6. If the company wants to raise the original price by 20%, what would the new price be? (20 points)
Answer Below:
Given InputsTotal Number of repairs = 3,500 Average price for repairs = $200 Variable cost for repairs = $50 Fixed cost = $300,0001. Contribution Marg...
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