You are the COO of KILLER Manufacturing Company. Your research & development department has created the ultimate MOUSE TRAP. You have called a meeting of your major department heads to discuss the future potential of this product for 2015. In attendance:

Sales VP		Talia
VP of Research		German
Production VP		Markose
IT VP		Aqip
CFO		Do

1) Talia, your sales VP, claims we can sell 20,000 units at an average price of $30.00. She also informs us that she estimates variable selling costs to be 10% of sales & fixed selling costs to be $25,000.

2) German, our VP of Research, that the development cost for the MOUSE TRAP was $75,000

3) Markose, our esteemed Production VP, gives us the following costs to produce one unit:

Direct Material		$2.50	per unit
Direct Labor		$7.50	per unit
Variable Overhead		$0.50	per unit
Fixed Overhead		$25,000.00

4) Aqip, our IT expert, tells us that the cost of additional IT development for this project will be $35,000 fixed.

5) You direct Do, our CFO of fame, to come with a budget for this product. Do announces that General & administrative cos of $45,000 should also be charged (GA costs).

REQUIREMENTS:
	1) Prepare a budget in good form for this product (show GP %, Net income %)
	2) Prepare a contribute margin statement for this product (show CM %, net income %)
	in good form
	3) Determine the breakeven point IN UNITS for THE ULTIMATE MOUSE TRAP