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3. Calculate the contribution margin ratios a) without the machine; b) with the machine. 1. Springtime LTD makes baskets. The fixed costs of operating the workshop for a month totals 500 $. Each basket requires materials that cost 2$ and takes one hour to make. The business pays the basket makers 10 $ an hour. The basket makers are all on contracts such that they do not work for any reason, they are not paid. The baskets are sold to a wholesaler for 14$ each. What is the breakeven point for basket making for the business in N of baskets)? With Machines: Profit - $ 500 BEP - 429 baskets Contribution - $ 7 per unit Without Machines: Profit - $ 500 BEP - 250 baskets Contribution - $ 2 per unit So, The profit is the same, when amount of BEP has increased to 429 but the demand is less than 429, then machine should not be rented