• Theta Services incurred the following costs related to a new service line:
  • Startup costs: $50,000
  • Annual fixed costs: $20,000
  • Variable costs per unit: $10
  • Selling price per unit: $30
  • Expected sales volume: 5,000 units

• Requirements:
  1. Calculate Theta Services' total fixed costs.
  2. Determine the total variable costs.
  3. Calculate the contribution margin per unit.
  4. Determine the breakeven point in units and dollars.
  5. Analyze the contribution margin ratio.