2. Breakeven Calculation A producer has labour costs of $1.50 per unit, material costs of $.45 per unit, and shipping costs of $.05 per unit. Advertising costs are $500,000. Salaries are $360,000. Overhead is $400,000. If the unit selling price is 2.50 , what is the Break-even in units? (3.5 Marks) 3. Target Contribution Breakeven The WeRNuts manufacturing company sells their "Model B" for $5.00 per unit. Their variable cost per unit is $4.25. The fixed costs total $750,000. If WeRNuts plans to increase advertising by $80,000 and also plans a profit goal of $70,000, how many units must be produced and sold to achieve these goals? (3.5 Marks) 4. Income or Operating Statements (simple format) ( 6 Marks) a) Unit sales of 10,000 b) Unit selling price $40 c) Unit variable cost $20 d) Marketing expenses $40,000 e) Fixed expenses (administration, rent, etc) $100,000 Sales Cost of goods