A company is considering launching a new product and has estimated the following data for the first year:

• The fixed costs for the first year are $200,000.
• The variable cost per unit is $20.
• The selling price per unit is $50.
• The company expects to sell 10,000 units in the first year.

a) Calculate the contribution margin per unit.

b) Calculate the total variable costs for the first year.

c) Calculate the total revenue for the first year.

d) Calculate the total profit or loss for the first year.

e) Calculate the break-even point in dollars for the first year.

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