Revenue per Unit

$10.00

Commission (variable cost)

$1.00

Fill in highlighted cells while including formulas used.

1) What is the contribution margin per unit?

2) What is the break even point per month?

3) With salary of $4,000/month, what is the break even point?

Cost/ Amount Cost Amount Life Cost/Shake $800 employee Constant Variable Costs Materials Cost Whole Milk $15.00 Cream $20.00 Sugar $10.00 Premium Van. Ice Cream $24.00 Flavorings $0.40 Flavored Straws $0.75 Cups $250 Additional Variable Cost per unit Total Variable Cost per unit (with commission) Amount 640 OZ 128 OZ 30 cups 600 Oz 1 serving 1 straw 500 cups Amount/Shake 3 oz 3 Oz 3/4 cup 9 oz 1 serving 1 straw 1 cup month month 10 Fixed Costs Labor 2 PT Employees Other Fixed Costs Shack Rental Cleaning and other supplies Equipment: Shake Maker Equipment: Fridge/Freezer Countertops Tables and benches Annual Insurance Signage Loan Interest Total Fixed Costs per month 1 $500 $100 $72/machine $480 $1,200 $108 $600 $100 $211.85/mo 1 1 Constant Constant 36 months 120 months 120 months 36 months 12 months Constant 24 months per shake per shake 10 sets 1 month 1 per month