If a vendor receives a contract for 100,000 items for $2.20 each and
the production of said items will take one year. Estimated costs for
the first year are as follows:
Lease payments on building . . . . . . . . . .. . .. . . . . . . . . .
. . . . . 	$800 per month
Lease payments on machine . . . . . . . . . .  . . . . . . . . . . . .
. . . . . 	$2,200 per mnth
Cost to retool machine . . . . . . . . . . . . . . . . . . . . 	$10,000 
Depreciation on machine . . . . . . . .. . . . . . . . . . . . 	$9,600 
Direct materials . . . . . . . . . . . . . . . . . . . . . . . 	$0.70 per item 
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . 	$0.30 per box 
Indirect materials and other manufacturing overhead . . . . . . . . .
. . . . . . . . . . . . . . .	$10,000
Interest on loan . . . . . . . . . . . . . . . . . . . . . . . 	$2,500 
Administrative salaries . . . . . .. . . . . . . . . . . . . . 	$15,000 

What I need to calculate:
 - Using the information provided, determine the contribution margin
and projected profit at a sales level of 100,000 items.
 -  If my salary at another job is $44,500, how many items must be
sold to earn profits equal this salary.

Hi,

I have the answer to this question. But how do I go about answering it
for you? Do I post it under commenets?

Hi,

I have the answer to this question. But how do I go about answering it
for you? Do I post it under comments?