# 18) JingleGymApp, a new division of JingleGym will be responsible for creating and selling an app version of the very successful JingleGym.

18) Ã¢â‚¬â€¹JingleGymApp, a new division of JingleGym will be responsible for creating and selling an app version of the very successful JingleGym. The company expects that the new division will be housed in a separate floor and will pay a rent of \$20,000 to JinglyGym. Salaries for the developers and a manager will total \$400,000. New computers will cost \$300,000 and will be depreciated annually at the rate of 10% of cost. Advertising expenses are expected to be \$50,000. The cost of producing an app is negligible at 4% of the selling price but Apple’s appstore charges a 30% commission for each app sold. With this data, JingleGym wants you to estimate the contribution margin (CM) and the break-even point (BEP) in dollars for the new division: Ã¢â‚¬â€¹A) Ã¢â‚¬â€¹There is insufficient data to calculate either valueÃ¢â‚¬â€¹B) Ã¢â‚¬â€¹CM=66%; BEP= \$757,576Ã¢â‚¬â€¹C) Ã¢â‚¬â€¹CM=34%; BEP= \$1,166,667Ã¢â‚¬â€¹D) Ã¢â‚¬â€¹CM=66%; BEP = \$1,166,667Ã¢â‚¬â€¹E) Ã¢â‚¬â€¹CM=34%; BEP = \$757,576Ã¢â‚¬â€¹
18) JingleGymApp, a new division of JingleGym will be responsible for creating and selling an app version of the very successful JingleGym. The company expects that the new division will be housed…

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