I have 2 break even scenario a I need help finding the better choice of the 2 in the first scenario I have fixed cost of 35,000 and variable cost $40,000 or 40$ per unit, contribution margin of 60$ per unit or 60,000 contribution margin, 1000 units are sold, the break even point is 583 units and break even point price of 75.00, operating costs are $25,000 lastly fixed costs are $35,000. In the second scenario I am selling 1500 units due to a 50% increase in sales, variable cost $63,000 or per unit 42$, contribution margin $87,000 or per unit $58, operating costs are now $50,500 with a break even point of 629.31 units and a break even point price at $66.33 . Both scenarios have the sale price of $100 per unit. The reason variable costs and fixed costs increased was due to a marking campaign directors expense to conduct the campaign raised fixed cost by $1,500 and production decided to add 2$ to the variable cost per unit. I have posted audition information to help determine the better solution for the business to choose either stay at 1000 units no campaign or increase fixed cost and variable cost, however production predicts a 50% increase in sales making our monthly sales go from $100,000 selling 1000 units to 150,000 selling 1,500 units

- Sales (1000 + 500) x $100 = $150, 000 - Variable costs (1000 + 500) x $42 = $63, 000 - Contribution margin = $87, 000 - Fixed costs (35000 + 1500) = $36, 500 - Operating Income = $50, 500 3. We can calculate the operating income per unit in the first scenario as follows: - Operating income per unit = $25,000 1000 $25 4. We can calculate the operating income per unit in the second scenario as follows: - Operating income per unit $50,500 $33.67 1500 = $3