Matt Schmidt has spent $750 for a tent, table, and chairs for his lemonade stand. He figures he can sell a glass of lemonade in the park to little league players for $.75. His cost per drink is estimated to be $.20. He also has to cover napkins, cups, and other variable costs estimated to be $.05 per glass of lemonade sold.

He will open his business on June 1 (a Monday) and be open five days each week for the summer months of JuneAugust. He will pay his parents $2 each day to transport him and his materials to and from the park. (**NOTE- Transportation costs of $2 a day should be used as a variable cost of $.02 per glass sold since he estimates selling 100 glasses per day**)

Matt projects daily sales of 100 glasses of lemonade.

Required:

1.What is his contribution margin?

2.What is his breakeven point (in units), given that he wants to cover all of his costs?

3.What day of the summer will he break even?