Calculate breakeven point and contribution margin. Explained in detailed.
Units = 216000
Cost per unit = $0.43
Fixed Costs
Insurance = $395
Legal Service = $468
Rent = $15,030
Interest = 19,250
Total Fixed Cost = $35,143
Variable Costs
Advertising = $43,200
Furniture and supplies = $14,752
Total Variable Costs = 57,952
Bank Loan $220,000 at 8.75%