Break even in unit = Fixed Cost / (Seeling Price variable Cost)

Break even in dollar = Fixed Cost / Contribution %

Fixed Cost = Rent of Shop + Salaries + Advertising + other operating expenses.

Fixed Cost = $100000 + $80000 + $20000 + $61000

Fixed Cost = $261000

Variable Cost = Purchase Price + Salesmen Commission.

Variable Cost = 10.5 + 1.5

Variable Cost = $12

Contribution % = (selling price variable cost) / selling price

Contribution % = (30 12) / 30

Contribution % = (60% 30 12) / 30

Break even in unit = fixed cost / (selling price variable cost)

Break even in unit = 261000 / (30 12)

Break even in unit = 145000

Break even in $ = fixed cost / contribution %

Break even in $ = 261000 / 60%

Break even in $ = $435000

Company sold 20,000 pairs of shoes during the year, calculate the net profit/loss.