Breakeven Analysis - Pt 1.1 Chewbacca wants to know what he can afford to spend on fixed costs for his deluxe single serve snacks specially formulated for Wookies. - He expects to sell his luxury Wookie snacks to the retail trade across the Republic for $12 per bag. - He estimates that he can easily sell 350,000 units per year - Product cost (through a contract manufacturer) is $8.00 - His "other" direct variable costs are $1.00 per bag How much can Chewy afford to spend on fixed costs and still break-even