# You have been asked to calculate how many units need to be sold to break even, based on the costs provided below. Contribution Margin:

You have been asked to calculate how many units need to be sold to break even, based on the costs provided below.

Contribution Margin:

Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?

.

Propose a budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of \$85, an income tax rate of 28% and the following information/Cost of goods sold of \$35 per unit, Labor = \$400/month / Advertising fees = \$3,000/ Bank fees = \$200/ Phone = \$150 per month/ Shipping = \$3 per unit/ utilities = \$100 per month / Office Supplies = \$900 /Conference Exhibitor Fee = \$3000 / Travel Expenses for Conference (e.g. airfare, meals, taxi) = \$1200

You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Use the information in task #3 except

do not consider taxes.)

Contribution Margin:

Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin? 