Original Break-even calculations

The company sells 1,000 units at $100 a unit.

Sales (total number of shoes sold in a month x selling price each shoe)	100,000
Variable costs (40%)	(40,000)
Contribution margin (Sales - Variable costs)	60,000
Fixed costs - given	(35,000)
Operating income (Contribution margin - fixed cost)	25,000
Break-even point (fixed costs / variable costs per unit) =	583.33 units

Respond to the following:

• How did you calculate the original operating income and break-even point before changes?
  • Detail how you calculated contribution margin, operating income, and break-even point.