Break-even points and contribution margins are terms that are frequently used in the business world. A break-even point indicates the point at which a firm does not make any profit nor suffers any losses. The marginal profit per unit sale indicates the contribution margin, which helps in various calculations.

Review the case study for this week. Given the quantitative information of the Digital Consultation Project?Central Pennsylvania Plastic Surgery, complete the following:

• Calculate the break-even point.
• Calculate the contribution margins.
• Analyze the break-even points and contribution margins.

The First Digital Consultation Project-Central Pennsylvania Plastic Surgery Total revenue for interactive site 145,000 Direct costs for digital designers 80,000 Direct overhead 20,000 General and administrative overhead (20 percent of total 16,000 direct costs) Total costs 116,000 Profit (20 percent) 29,000 Total bid