Software Solutions Inc (A)

10. points Software Solutions, Inc., was started by two young software engineers to market SpamBlocker, a software application they had written that screens incoming e-mail messages and eliminates unsolicited mass Sales of the software have been good at 20,300 units a month, but the company has been losing money as shown below: $386,715 Sales (20,300 units x $19.05 per unit) 119,770 Variable cost (20,300 units x$5.90 per unit) 266,945 Contribution margin 254,500 Fixed expenses (12,445) Net operating loss The company's only variable cost the $5.90 fee pays to another company to reproduce the software on CDs, print manuals, and package the result in an attractive sale to consumers. Monthly fixed selling box for and administrative expenses are $254,500