Variable costs on:

Home Bar appliance $250 to produce and distribute. (This price point considers the following: returns, warranty parts, promotions, fulfillment, and freight).

Variable costs for production on:

Alcohol Cocktail Pods: $1.20

Non-alcoholic Mixing Pods: .95

Beer Pods: $1.10

Alcoholic Pods MSRP is: $4.00 per Pod

Non-Alcoholic Mixing Pods MSRP: $1.50 per Pod

Beer/Cider Pods MSRP ARE: $3.00 - $2.00 per Pod respectively.

Total Variable Costs are? _______

If the selling price is $299 for the appliance, and the selling price (MSRP) for the Pods are AS listed above, then the total variable costs are $ _____, and the contribution margin is _______?

The operating income must be at or over $2.9 million, then we can use the following formula to determine the required sales revenue: Required sales revenue = (Operating income + Total costs) / Gross profit margin

What is my required sales revenue?

What is the gross profit margin?

What is my breakeven in units?