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2 We Sell Homes for $250,000.00 Assume the Direct Materials cost $100,000.00 and the Labor is $60,000.00 Calculate Contributin Margin 3 Our Fixed Costs Are as follows President's Salary Accountant Sales Manager Achitect Engineer Architect Engineer Maintenance & Facilities $100,000.00 $60,000.00 $60,000.00 $40,000.00 $50,000.00 $40,000.00 $40,000.00 $60,000.00 10 11 12 13 Total Fixed Costs Job Cost Process Cost- Varianco ABC Costing Break Even KFC Break Even - Budget We sell Homes for sco. 8 9 President's Salary Accountant Sales Manager Achitect Engineer Architect Engineer Maintenance & Facilities $100,000.00 $60,000.00 $60,000.00 $40,000.00 $50,000.00 $40,000.00 $40,000.00 $60,000.00 Total Fixed Costs 15 Calculate the Break Even in Homes to Build 17 18 How many homes do we need to sell this year to make a profit of $100,000.00 20 Job Cost - Process Cost - ABC Costing Break-Even - KFC Break Even Budget - Variance