Hello. I am working through question 4 below and getting stuck with finding tbe break even point, more specifically, how to identify the contribution margin per unit to do the contribution margin approach to solving for the break even point. would you support me in how you would identfy this information from the sheets provided?

company usage is 205 hours. Assume commercial usage is at the March level. 4. Assuming the intracompany demand for service will average 205 hours per month, what level of commercial revenue hours of computer use would be necessary to break even each month? Since the intracompany demand is known to be 205 hours, the contribution from these sales is assured to cover a portion of the fixed costs. Thus, to determine the level of commercial revenue hours required to break even the contribution from commercial sales only needs to cover the fixed costs remaining after subtracting the fixed costs already covered by the contribution from intracompany sales. Salem Data Services - Contribution Margin Income Statement Revenues Intracompany sales 89,200 Commercial sales 110,400 Total revenue 199,600 Less Variable expenses Power 128,277 Operations: Hourly personal 8,664 Total variable expenses 10,361 Contribution margin 189,239 Less Fixed expenses Rent 8,000 Custodial Services 1,240 Computer leases 95,000 Maintenance 5,400 Computer depreciation 25,500 Office equipment depreciatic 1,697 Operations: Salaried staff 21,600 Administration 9,000 Sales 11,200 Sales promotion 8,083 Corporate Services 15,236 Total fixed expenses 201,956 ch Operating profit -12,717 ro O at Exhibit 1 Salem Data Services Summary of Computer Utilization, First Quarter 2004 January February March 22 20 Number of weekdays (M-F) X 24 hours per day 23 552 528 480 5 Number of Saturdays X 8 hours per day 4 32 40 32 Total hours available for revenue 568 512 584 Revenue hours Intracompany Commercial Total revenue hours 206 123 329 181 135 316 223 138 361 Hours available to sell 239 196 223 Source: Casewriter, Exhibit 2 Salem Data Services Summary Results of Operations, First Quarter 2004 January February March Revenues Intracompany sales Commercial sales $82,400 98,400 $180,800 $72,400 108,000 $180,400 $89,200 110,400 $199,600 Total revenue Expenses Space costs: Rent Custodial services $8,000 1,240 9,240 $8,000 1,240 9,240 $8,000 1,240 9,240 95,000 5,400 95,000 5,400 95,000 5,400 Equipment costs Computer leases Maintenance Depreciation: Computer equipment Office equipment and fixtures Power 25,500 680 1,546 128,126 25,500 680 1,485 128,065 25,500 680 1,697 128,277 Wages and salaries Operations: salaried staff Operations: hourly personnel Systems development and maintenance Administration Sales 21,600 7,896 12,000 9,000 11,200 61,696 21,600 7,584 12,000 9,000 11,200 61,384 21,600 8,664 12,000 9,000 11,200 62,464 Sales promotion Corporate services Total expenses 7.909 15,424 $222,395 7,039 15,359 $221,087 8,083 15,236 $223,300 Net income (loss) $(41,595) $(40,687) $(23,700) Sources Casewriter