Building purchase: $400,000.

Annual insurance expense: $1,000.

Electricity expense: $200 per month.

Water expense: $50 per month.

Gas expense: $150 per month.

Property maintenance: $50 per month.

Internet and telephone: $160 per month.

Equipment & Furniture purchase: $120,000.

Management salaries: $2,800 per month.

Business tax expense: 13%

The building purchase would require a 20 year mortgage with an interest rate of 3.2%. Depreciation would be at 5% per annum.

The equipment and furniture purchase would be financed with a 5 year loan at an interest rate of 5.2%.Depreciation would be at 18%.

Calculate fixed expense in order to compute break even per year. Thank you