In Monday's Class we defined Break-even as: NI = 0 Total FC=Total CM Where Total Revenues = Total Costs Again - we have a company with the following expenses (costs) Rent 1000 /month Insurance 2000/year Utilities 500 /month Advertising 2000/year Commissions 2000/year This company only makes one product (again not very realistic) We will look at companies later who make and sell multiproducts Sale Price of Product 2000. Cost to make product 800. Calculate the # of units to break-even. Prove your answer by preparing a contribution margin income Statement. What is the CM%? (Ratio) What is the Variable Cost %? Calculate break-even sales dollars using the CM% (Total sales Revenue at BE point - This should be the same as sales above) Calculate the # of units to earn a $12000 profit. Prove your answer by preparing a CM income statement. Calculate the # of units to earn a $12000 profit. Prove your answer by preparing a CM income statement. If you sell one unit above break-even what profit will your company show on its CM income statement. Prepare the Income Statement