Lorne Is Considering Working For Part Time Painters He Would Operate As An Indep

Lorne is considering working for Part-Time Painters. He would operate as an independent painter, but the jobs would be given to him by the company. In the company’s advertisements, $100 would be charged for each room painted. The painter would then receive 80% of the amount billed. For each job, the painter would supply paint and brushes, at a cost of $38. Each painter must have his or her own ladders, drop cloths, and other tools, at a cost of $720.

For each of the following, perform a break-even analysis showing computation of the

  1. contribution margin;
  2. contribution rate;
  3. break-even point in units;
  4. break-even point in sales dollars.
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