S2 Prime Breakeven Calculation Thoughts I. Given overhead divided by projected sales = overhead per unit $1,000,000 = 2,000,000 = $.50 per unit (allocated fixed cost per unit) Direct cost less quantity discounts Duo-Pak Refill $2.68 $2.04 . .08 ..04 per unit $2.60 $2.00 Direct cost per unit plus allocated fixed cost per unit Duo-Pak Refill $2.600 $2.000 + .500 + .500 $3.100 Cost $2.500 Calculate the even cent breakeven SRP for the Duo-Pak and the Refill. A. 10 % Brokers' commission and price to retailers* Duo-Pak $3.100 Cost per unit 90 % Brokers' Commission 10 %* $3.444 Price to Retailers 100 % B. Retailers margin and breakeven SRP* Duo-Pak $3.444 Price to Retailers 75 % Retailers margin 25 %* Breakeven SRP 100 % Even cent Breakeven SRP *markup on selling concept required Refill $2.500 Refill + .926