Betty Buns is a student run hot fruit bun stand operating on a university campus, open ten months of the year. Fruit buns are bought partially pre-baked and then heated in the sales cart and sold. You are given the following figures pertaining to next years budget:

Expected annual sales 73,000 buns at $0.70 each Staff salaries - $21,700 p.a. Monthly hire of cart $ 50. The cart is only hired in the months required. Cost of buying part-baked buns is $0.23 each. Monthly electricity costs $30. As the cart is heated all the time when in use this electricity cost is the same each day, regardless of sales. No electricity costs are incurred in the non- operational months. Fruit buns are given to customers in paper bags one per bag- and bags cost $0.02 each.

QUESTION:

Calculate the;

- variable costs per fruit bun (unit)

- contribution margin per fruit bun

- annual fixed costs

- annual number of fruit bun sales required to break even