• Xi Logistics incurred the following costs for a new logistics service:
  • Startup costs: $100,000
  • Annual fixed costs: $30,000
  • Variable costs per unit: $15
  • Selling price per unit: $50
  • Expected sales volume: 2,000 units

• Requirements:
  1. Calculate Xi Logistics' 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.