Don has developed an app for San Antonio residents that helps tourists coming to San Antonio find all the touristy attractions of our city and directions on how to get to many destinations. He has coordinated with the city of San Antonio to link to all of their sites.

Selling Cost = $0.99

Variable Cost = $0.25

Fixed Cost = $1,000/Month

They plan to sell 100,000 units in year 1

They plan to sell 125,000 in year 2

Required:

1. Calculate the projected profit margin for years 1 and 2

2. What is the breakeven point for this project in year 1