Horst Inc. (HI) prepares personal loan pay-off plans for recent college graduates. HI has the following...

Horst Inc. (HI) prepares personal loan pay-off plans for recent college graduates. HI has the following budget for next year:

Prepare 1000 plans.

Incur costs as follows:
Office rent for the year is $6000
Travel costs are estimated at $30 per plan
Software costs $2000 per year plus $25 per plan.
Printing and binding costs are $15 per plan.

1. How much will HI have to charge for each plan just to break-even for a year. Round to the nearest dollar. per plan.

2. If HI charges $300 per plan, and everything is as budgeted, what will HI have for a total contribution margin for the year?

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Expert Solution

ekkarill92 answered 1 year ago

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