1. Assume you have decided to buy an advertisement in the local newspaper to publicize

your new photography business. The cost of the ad is $6700. You have decided to charge

$135 per photo shoot, and your variable costs are $45.

a. What is your contribution per unit?

b. How many photo shoots do you need to break even on the cost of the ad?

c. What is your break-even point if you charge $155 per shoot?