Homework Answers
| Sales Revenue | $ 41,600 |
| Less Variable Costs | |
| Cost of Revenue | $ 14,640 |
| Selling, General and administrative expenses | $ 4,795 |
| Contribution Margin | $ 22,165 |
| Less Fixed Costs | |
| Cost of Revenue | $ 3,660 |
| Selling, General and administrative expenses | $ 8,905 |
| Depreciation | $ 4,600 |
| Net Operating Income | $ 5,000 |
Contribution margin per account = $22165/100 = $221.65
a. Break Even = Fixed Costs / Variable Costs per account
= $17165/221.65 = 78 accounts
b. Revenue per account to breakeven = ($18300+13700+4600)/100 = $366 per account
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