Find the break even analysis for the spreadsheets below.

A break-even analysis finds the number of units you need to produce to cover your fixed costs. How would you calculate the break-even point from the spreadsheets below? Show work

What is the contribution margin per unit? Show work

What is the unit breakeven volume? Show work

What is the gross margin in dollars and percent? Show work

Using percentage gross margin, what dollar volume do they need to sell in order to break even? Show your work.

Break-even analysis also helps us understand the profit potential of a business by honing in on the point at which a business will recoup its startup costs and other fixed costs and therefore begin to generate a profit. Break-even analysis requires first determining the contribution margin for each additional unit of output. Contribution margins can be expressed on a per-unit basis, as a percentage of sales, or as a dollar amount for the company overall. On a per-unit basis, contribution margin is calculated as follows:

Contribution Margin per Unit = Price per Unit - Variable Costs per Unit

Once we know how much each unit is contributing beyond variable costs, we can calculate how many units we would need to sell to recoup our fixed costs (including both startup costs and fixed operating costs):

Unit Breakeven Volume = Fixed Costs Including Startup Costs / Contribution Margin per Unit

2021 2022 2023 Sales Cost/ Goods Sold (COGS) Gross Profit $167,976 $149,039 $18,937 $335,952 $190,079 $145,873 $503,928 $231,118 $272,810 Operating Expenses General liability insurance, per year (Cyber) Security & maintenance App Store Developer Fee Telephone/internet service Accounting/legal Server Cost $420 $1,488 $1,488 $720 $1,320 $2,340 $27,296.10 $456 $1,562 $1,488 $756 $2,640 $2,340 $30,025.71 $494 $1,641 $1,488 $794 $5,280 $2,340 $33,028.28 Free Trial $ $ Advertising Customer Acquisition Cost Total Operating Expenses $7,096.99 $42,169 $3,903.34 $43,171 $2,862.45 $47,928 Net Profit Before Taxes Income Taxes $ -$23,232 (2,053.74) $ -$21,179 $102,702 9,078.87 $ $93,623 $224,882 19,879.59 $205,003 Net Operating Income YEAR 1 YEAR 2 YEAR 3 Start-Up Cost YEAR 1 YEAR 2 YEAR 3 KEY ASSUMPTIONS: Subscription Price Number of customers $69.99 $69.99 $69.99 $21,667 $21,667 $21,667 200 400 600 5 5 5 Number of employees Hourly wage $20 $25 $30 Sales Forecast $13,998.00 $167,976.00 $27,996.00 $335,952.00 $41,994.00 month $503,928.00 year Start-Up Cost $100 $125 $150 FIXED OPERATING COSTS: General liability insurance, per year (Cyber) Security & maintenance App Store Developer Fee Telephone/internet service Accounting/legal Server Cost Free Trial Advertising Customer Acquisition Cost $420 $1,488 $1,488 $720 $1,320 $2,340 $27,296.10 $456 $1,562 $1,488 $756 $2,640 $2,340 $30,025.71 $494 $1,641 $1,488 $794 $5,280 $2,340 $33,028.28 $ $ $ $7,096.99 $3,903.34 $2,862.45 STARTUP COSTS (TREATED AS FIXED ONE-TIME COSTS): Cost of new app $13,333 $13,333 Software costs $8,333 $8,333 $13,333 $8,333