View answer A Question: _ _ . What sales volume is requured to break even on Classic '5 2 year marketing investment ? Answer: In order to calculate the break even on Classic '5 2 - year investment , we 'II have to analyze the contribution margin provided by each unit and the total fixed costs in both the years . Contribution Margin : In order to calculate the contribution margin , we'll take the average gross profit from Exhibit 4 ( $ 7.05) and subtract the trade promotion (5 %) and advertising allowance (10 % for 20 % of retailers) . Therefore , our contribution margin will be : 7.05 - 0.8935 - 0.35 = 5.8085 Breakeven in units : If we consider the total costs to be 3,000,000 , our breakeven will be 3,000,000 5.8085 = 518,883 units