Board shorts Selling Price 75.00 Less Variable Costs Direct Materials S 14.25 Direct Labour 21.00 Variable Manufacturing Overhead 2.25 Total Variable Costs 37.50 Contribution Margin 37.50 Contribution Margin Ratio 50% Annual Fixed Costs Utilities 2,500.00 Insurance 6,000.00 Wages $ 180,000.00 General Office Expenses S 8,000.00 Rent 16,800.00 Interest 500.00 Total Operating Expenses $ 213,800.00