Your company is beginning to grow, and they want to better understand their break-even point. Assumptions Your company sells widgets, and one unit sells for $25.?The following are the fixed costs:? Rent - $1,750/month? Electricity - $200/month? Utilities - $50/month The following are the variable costs:? Materials - $5.00 per unit Based on these assumptions, please answer the following:? What is the contribution margin?? How many units does the company have to sell in a month to breakeven?? How many units does the company need to produce to breakeven? Please provide a screenshot of your analysis or attach the Excel spreadsheet showing your work.

Break-Even Analysis Assumptions Revenue per item $25 Fixed Costs - Rent $1,750 - Electricity $200 - Utilities $50 Variable Costs - Materials $5.00 Contribution Margin Calculation Revenue per item - Variable cost per item Contribution Margin Ratio Calculation Contribution Margin / Revenue per item Break-Even - # of Units Total Fixed Costs Price Per Ind. Unit Variable Costs Break-Even Unit Calculation Fixed Costs/(Revenue per item - Variable cost per item) # of units that you have to sell to break even OR Fixed Costs / Contribution Margin Should be the same number Break-Even - Dollar Amount Total Fixed Costs Price Per Ind. Unit Variable Costs Break-Even Dollar Calculation Fixed Costs / Contribution Margin Ratio $ amount needed to sell to break even