Nator Group is establishing an factory in Newsouth wale, Australia. Fixed monthly expenses are factory rent ($9,000 +2), depreciation on factory machine ($2,000 +2), utilities ($1,700+2 ), telephone bills ($1,500 +2), a connection with an online service ($3,000 +2), and

the salary of a worker ($5,500 +2). Variable costs include payments to the marketer planning

(11% of revenue), administration expense (10% of revenue), supplies (5% of revenue), and usage
fees for the telephone lines and water bill at office(10% of revenue).
Requirements
1. Apply the contribution margin ratio approach to calculate Nator Group breakeven
revenue in dollars. If the average service leads to $1,500 in revenue per service for Nator
Group, how many service must be made to break even?

2. Apply the equation approach to calculate the dollar revenues needed to earn a monthly
target profit of $13,400.

3. Suppose that the average revenue Nator earns increases to $1,600 per service. Compute
the new breakeven point in service. How does this affect the breakeven point? ​