Milestone Two-Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit $ 28.00 30.00 35.00 Variable Cost per Unit (9.10) (12.10) (14.60) Contribution Margin $ 18.90 $ 17.90 $ 20.40 Milestone Two-Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price $ 28.00 $ 30.00 $ 35.00 Fixed Costs $ 4,028 $ 4,028 $ 4,202 Contribution Margin $ 18.90 $ 17.90 $ 20.40 Break-Even Units (round up) 213.14 225.05 205.96 $ 214.00 $ 226.00 $ 206.00 Target Profit $ 300.00 $ 400.00 $ 500.00 Break-Even Units (round up) 229.01 247.39 230.47 $ 230.00 $ 248.00 $ 231.00 Target Profit $ 500.00 $ 600.00 $ 650.00 Break-Even Units (round up) 239.59 240.00 258.57 259.00 237.83 238.00 At the End of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: Materials purchased: $20,000 o Consumed 80% of the purchased materials Direct labor: $8,493 Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month.