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Calculate breakeven point and contribution margin

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Calculate breakeven point and contribution margin. Explained in detailed.

Units = 216000

Cost per unit = $0.43

Fixed Costs                                                

Insurance = $395

Legal Service = $468

Rent = $15,030

Interest = 19,250

Total Fixed Cost = $35,143

Variable Costs

Advertising = $43,200

Furniture and supplies = $14,752

Total Variable Costs = 57,952

Bank Loan $220,000 at 8.75%

Reference no: EM131572228

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